navigatormagazine.fi Yearbook2019

The Finnish World class maritime cluster innovations knows collaboration First in the world Viking Grace – Wind and LNG hybrid ’s seaway to the world

Finnlines is one of the leading shipping operators of ro-ro services in the In 2018 Baltic , North Sea and the Bay of Biscay as well as a passenger service we transported provider in the Baltic. Our environmentally friendly and modern fleet transports both cargo and passengers safely, efficiently, and responsibly 163,000163 000 to their destination. cars

Sustainable development and environmentally friendly vessels

754,000 Investments in the fleet New energy-efficient vessels cargoca go uunits ts In recent years, we have invested heavily in Three ice-class newbuildings will start in traf- our fleet: EUR 100 million in environmental fic in 2021–2022. These hybrid ro-ro vessels technologies that enabled us to significantly will be the most energy-efficient in the mar- reduce our carbon footprint, and EUR 70 mil- ket due to their size and design. We are also 655,000655 000 lion in increasing the energy efficiency of our planning a new series of Superstar ro-pax vessels passengers vessels. We will continue to implement our with the goal of creating the most environmen- strategy with determination and consistency tally friendly ship design ever to have operated in by investing over EUR 500 million more in the the Baltic Sea. With the new vessels the energy coming three to four years. consumption per transported unit will decrease 1,226,000 tons of and our carbon footprint will be reduced further. non-unitised freight

Accross the Baltic Sea Germany, Finland, Åland and – sail around the Baltic Sea with Finnlines. Explore and discover the best offers at finnlines.com i fmc-yearbook.com Read Finnish Maritime Cluster Yearbook 2019 online Contents and print out the magazine or single stories.

The Finnish maritime cluster knows collaboration The Finnish maritime cluster is significant by international standards. There is strong high-technology development like digitalization and environmental expertise in Finland, and these areas represent two global megatrends. Among Finland’s defining characteristics are its small size, agility and mutual trust, which are reflected in strong collaboration between the public sector and companies. Various joint projects are also spawning startups. Collaboration is bearing fruit in the form of innovation. Finnish vessels act as references and testing platforms for innovations in the marine industry and, once testing is complete, they can be launched on world markets. The competitive ship-owning sector underpins the growth of the maritime cluster as a whole. The industries are intrinsically linked – ports and port Juha Mutru, Tiina Tuurnala, Elina Vähäheikkilä and Annaleena Mäkilä from the Finnish Mariti- operators do well when ship owners and the marine in- me Cluster. (The Finnish Maritime Cluster includes Tiina Tuurnala, the Managing Director of the dustry are buoyant. In turn, these industries require good Finnish Shipowners’ Association, Annaleena Mäkilä, the Managing Director of the Finnish Port Association, Juha Mutru, the Managing Director of the Finnish Port Operators Association and ports and fairways, functional logistics chains and good Henrik Bachér, the acting Managing Director of Finnish Marine Industries.) mutual collaboration.

Editorial: Finland is a pioneer in digital Port operations 5 seafaring and environmental technology. 42 48 Ship owners 6 Breaking Waves brought the maritime sector to . Interview with 55 Harbour operation Magda Kopczynska and Jens Meier. 56 FinnPilot 14 Meyer going strong both in Finland and Germany. 57 New services and solutions 22 Shipyards 62 The Finnish Border Guards

29 Shipbuilding and design expertise 66 Column, Mikko Niini, Chairman, Finnish Maritime Association 38 Marine industry

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Publisher Editor-in-chief Layout Printed by Navigator Magazine: Omnipress Oy Kari Martiala Oona Kavasto/Hank Printall AS Finnish Maritime Society, Mäkelänkatu 56 tel. +358 45 675 7122 Tallinna Finnish Marine Industries, 00510 Helsinki kari.martiala@omnipress.fi Advertisements ISSN 0355-7871 Finnish Shipowners' Associa- tel. 020 6100 115 Matti Poijärvi 2019 tion, The Finnish Society of toimitus@omnipress.fi Editor Tel. +358 40 848 4098 Naval Architecs,Finnish Port omnipress.fi Markku Pervilä matti.poijarvi@omnipress.fi Operators Association, Finn- Tel. +358 44 945 4375 ish Port Association, LOGY, [email protected] Shipbrokers, Finnish Water- way, Meriupseeriyhdistys.

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Finland is a pioneer in digital seafaring and environmental technology

inland’s maritime cluster is one of the country’s most significant business sectors with annual revenues of EUR 13 billion. The sec- tor employs more than 50,000 people all over the country. The positive outlooks that have prevailed in recent years are down to the development of autonomous maritime traffic among a group Fof pioneers, successful trials of the deployment of new, environmentally fri- endly technologies, and an unprecedented upswing in constructi- on. The maritime cluster encompasses about 3,000 companies from various sectors, all of which are connected by their maritime expertise. Our diversity differentiates us from many other countries. Among our number are passen- Finland’s unique ger and cargo ship owners, specialist ship owners, marine industries ranging from shipyards to software companies and startups, as well as the ports that strength is the handle almost 90 per cent of Finland’s foreign trade. Passenger traffic is al- ” exceptionally so an important category. The is the busiest passenger port open-minded in . In 2018, more than 12 million international passengers passed collaboration, through the Port of Helsinki. Finland’s unique strength is the exceptionally open-minded collaborati- enabling innovative on between entities, enabling innovative experimentation. Examples of this experimentation. include the One Sea innovation ecosystem, which is promoting autonomo- us maritime traffic, the remote pilotage experiment, which is current under preparation, and the smart fairway, which is based on using data and data exchange in an entirely new way. Seafaring history was made in Finland at the beginning of December 2018 when the world’s first fully autonomous ferry sailed through the archipelago. In cooperation: The Finnish maritime cluster is also a pioneer in environmental innovation and it is at the global spearhead of the development and deployment of low- emission technologies that enhance energy efficiency. Liquefied natural gas (LNG), wind, electricity and biofuels manufactured from waste are already in use – they have long since graduated from the planning phase. Finland also has very strong Arctic expertise. The Baltic Sea could even be considered an “Arctic test laboratory”. Finnish seafaring expertise is unique, and the icy winter and difficult navigation conditions require seafarers and entities in the maritime industry to have special skills. The entities in the maritime cluster have begun collaborating more clo- sely in recent years. For example, the Breaking Waves 2018 event was held in Helsinki in December 2018, bringing together key players in the Euro- pean maritime cluster to consider the keys to success in increasingly tough global competition. The event was part of one of Europe’s largest startup events, Slush. Automation and digitalization will lead to an unprecedented transfor- mation in seafaring. Climate change is challenging the maritime cluster to identify solutions for low-emission maritime traffic. This publication high- lights the world-class Finnish expertise and innovations that will address these challenges.

Tiina Tuurnala Managing Director, Finnish Shipowners’ Association Chairman, Finnish maritime cluster

5 Breaking Waves

The organisers were satisfied with the feedback they received on the event.

The event was opened by Al- exander Stubb, Vice President of the European Investment Bank (EIB).

Breaking Waves brought the maritime sector to Helsinki

The two-day event, arranged to coincide with Slush in December 2018, brought together the top entities from the maritime cluster in Finland and Europe, offering ideas and inspiration for addressing future challenges.

he seminar, organized by the sectorial boundaries,” says Tiina Tuurnala, Meier agreed, but he also highlighted Finnish Ship Owners Asso- Managing Directors of the Finnish Ship the importance of experimentation. ciation, the Finnish Port As- Owners Association. “We need to experiment more boldly and sociation, the Finnish Port not be afraid to fail more quickly than we Operators Association, Finn- Consensus do now,” he said. “The Americans are ahead Tish Marine Industries and the City of The think tank’s ideas were presented to of us in this area.” Helsinki, brought about 250 people to the seminar audience on Tuesday by Mag- Dorsman called upon the EU to stimu- the Messu keskus Convention Center to da Kopczynska, a Director from the Euro- late innovation in the industry. He con- hear the latest news from the industry, pean Commission; Martin Dorsman, Sec- sidered it necessary for the public sector analysis of future challenges and poten- retary General of the ECSA; Jens Meier, to provide more support for investment. tial solutions. Chairman of the Hamburg Port Authority; Kopczynska reminded the audience of The attendees included from business- and Jaakko Eskola, President and CEO of the upcoming EU elections and the fact people, civil servants, researchers, students Wärtsilä. They came to a consensus on the that the EU will have a new parliament and and startup entrepreneurs. think tank’s objective: Things must change, commission in less than one year. These The event actually began on the previ- and quickly. bodies will be responsible for financing ous day with a think tank session for in- But what can be done to effect change? decisions in forthcoming years. She also vited guests. That was a more contentious issue. emphasized that a lot depends on the mari- “Our discussion was open and forward- “The industry requires young new en- time industry itself. looking, and the attendees were particularly trants who see things from different per- “In my opinion, there is often too much pleased to be involved in debates across spectives,” Eskola said. focus on the negatives – where does that

6 come from? It would be better to think that various challenges facing the maritime clus- we have the expertise and knowledge in We need to ter. To round the day off, the collaboration Europe to take these matters in hand,” she experiment network set up by Turku Business Region said. “Therefore, the maritime cluster holds ” more boldly and Avanto Ventures for startups presented the keys to the solution.” its three best ideas. “Optimizing operations in the logistics and not be Of these, a thermal-imaging model devel- sector is the next major challenge facing the afraid to fail. oped with Wärtsilä is only just progressing European Commission as the environment to the practical-testing phase, while Meyer is changing rapidly. This raises questions of Turku is already using POINTR, a supervi- regulation as well as funding. First, we must sion- and monitoring-system provided by analyze what is required, and then we must for Finferries and Rolls-Royce, who demon- Delta Cygna Labs. Vital Vio is launching create a common European solution.” strated the world’s first autonomous ferry an application of its antibacterial lights for The think tank’s work also gave rise to trip and presented the related SVAN project cruise ships, with testing carried out on proposals for tangible steps forward. on the previous day. Royal Cruises’ Harmony. “One necessary reform is to open up the The historic autonomous voyage com- data used in different sectors for everyone bined autonomous passage through the Appreciation from the participants to use. At present, the data collected by fairway, guided by a computer with a cap- The organizers were satisfied with the feed- different sectors is underused and it is not tain remotely controlling the vessel from back they received on the event. shared between companies or organizations terra firma. “The conference was a success and the enough,” Eskola said. Despite the hugely successful maiden voy- speeches provided plenty of information “In addition we need to expand the terms age, Iiro Lindborg and Oskar Levander on the future challenges facing the mari- of debate to include parties outside the sec- from Rolls-Royce predicted that autonomous time cluster. It was great to see how Fin- tor, as well as entities that are substantially vessels and remote control will only become land is pioneering environmental innova- incorporated into our ecosystem.” widespread in international waters midway tions, digitalization and automation in the Added Meier, “In this respect, we could through the next decade. maritime industry,” says Tiina Tuurnala, take a cue from the aviation sector, where “We expect the IMO to issue guidelines Managing Director of Finnish Ship Owners data is shared and exchanged very efficiently. related to automatic control in 2025 or Association. This prob- lem would be fairly easy to solve.” thereabouts. However, the success of our “We have clearly succeeded in creating project and the tangible demonstration of an atmosphere conducive to collaboration, Flashes from the future its functionality will apply some pressure interaction and opinion-sharing,” says An- During the afternoon, Finnish and Europe- to this, so it may be possible to get things naleena Mäkilä, Managing Director of an companies and organizations presented in motion,” they stated. Ports of Finland. the latest advancements to the audience. The Maritime Accelerator 2018 project She said there are plans to continue the The most rapturous applause was reserved also sought new ideas for addressing the event this year.

7 Breaking Waves

The Commission would like to see a unanimous sea cluster

TEXT MICHAEL HUNT PHOTO ANTERO AALTONEN

s a representative from the Europe- an Commission at the recent Break- ing Waves 2018 think tank in Helsinki, Magda Kopczynska asked European maritime cluster leaders what she should Ado to help them solve the industry’s future concerns. We’ll” never “I haven’t got one answer,” said Kopczynska, Di- rector for Waterborne in the Directorate General for have enough Mobility and Transport of the European Commis- money. sion. “Of course, there was a lot of discussion about regulation, whether we have enough regulation in There Europe, whether we have the right kind of regulation. is always a “Nobody questions, and neither do I, the fact that maritime transport is a global business. So we need need to make global regulation. But the European maritime clus- choices. ter functions in Europe hence it is important to also recognize the role that the can play. Hence my questions about the role the Commission could – and should – play. “So my question again and again, but not answered yet, is what needs to happen to make sure the mari-

8 Kopczynska came to the European Commission in 2006, and has been in her current post since 2016.

9 Breaking Waves

I was impressed with the think- tank results, as well as Slush, ” the Helsinki-based start-up convention with which Breaking Waves was affiliated.

time cluster has access to new technologies, new solu- tions, better infrastructure, better skills and so forth.” Few cluster leaders, she said, asked about finance during the round-table discussion. Instead, most of the questions she received involved European Commission regulation and cooperation within the industry. “We’ll never have enough money,” she said. “There is always a need to make choices.” Financial prioritizing toward reducing emissions, alternative fuel sources and more efficient energy, information technology, security and other concerns were also topics of discussion at the think tank. But few points were as salient as data sharing. “Everyone saw big value in working together and sharing the data,” she said. “That is a very interest- ing point for me because I think in the shipping sector data sharing has not been as prominent as in the land transport modes, and in particular pas- senger transport. “The idea that you need to share data to have new types of businesses is very present. That’s a very strong ently. Now, it’s good to hear, for example, from peo- statement we’ve been hearing from other transport ple in the Finnish maritime sector that because of modes for a couple of years now. In the maritime the requirements for low-sulfur fuels that kicked in industry data sharing is relatively new, the last two 2015, today they find themselves at the forefront of or three years. new environmentally friendly solutions. “As always, my question back, to which the answer “Now the big question is CO2 emissions, how are will differ depending on whom I’m asking, is, ‘What is we going to work on it, how quickly will be able to the ideal approach that will allow the sector to make respond and meet the targets. It’s not only about full use of the potential offered by digitalization and ship owners. It’s about ports, it’s about shippers, data sharing? Shall regulation come first or shall it it’s about users.” follow innovative and breakthrough solutions, devel- Kopczynska, who came to the European Com- oped and implemented at industry level?’ “ mission in 2006, has been in her current post since Such industry-wide cooperation is necessary to 2016. Before joining the Commission, she served as keep the European maritime cluster competitive in Director of the Brussels Office of the Polish Private a changing global economy, as is the need to reduce Employers Confederation, as well as holding posi- shipping’s carbon footprint. tions within Warsaw local government. As a regulator who was once head of clean trans- She said she was impressed with the think-tank port for the European Commission, Kopczynska said, results, as well as Slush, the Helsinki-based start-up “If we had this think tank two or three years ago, the convention with which Breaking Waves was affiliated. environmental discussion would have looked differ- “Slush is overwhelming,” she said. “You have thou-

10 The think tank’s ideas were presented to the seminar audience on Tuesday. The sum- mary was presented by Magda Kopc- zynska, a Director from the European Commission, Jens Meier, Chairman of the Hamburg Port Authority, Martin Dorsman, Secretary General of the ECSA and Jaakko Eskola, President and CEO of Wärtsilä.

sands of young people with ideas from across the cal providers, sometimes it has to do with a stronger entire life spectrum, from education to health to presence of ship-management companies. But I’m not business to data sharing. It’s a question to companies saying this diversity is wrong. Diversity is absolutely to ask if they found something in Slush that was a essential when we are talking about the EU.” surprise for them. Kopczynska said industry leaders agreed on an “For me, a definite takeaway was that we need to overall vision for the future of the European cluster. work together more and we need to work together But what does it mean for regulators? slightly differently. Sometimes simply putting people “It’s a very difficult question to the EU Commis- around a table makes them come up with the right sion,” she said. “I can tell you what I would like to see solution. I think that’s a bit of what Slush is about, to the European maritime cluster look like and what I make people meet in one place and talk about ideas.” would like it to be. Such was the goal of the think tank, which brought “I’d like it to be European, I’d like it to support industry leaders together for the good of the cluster, European companies, I’d like it support European however it is defined. research and innovations, technologies, European “I’d say we have European maritime clusters, and business and social models. not just one European maritime cluster,” Kopczynska “The big political objectives, the climate and emis- said. “Depending on where you go in Europe, we may sions, the overall environmental impact. And I’d like have a slightly different focal point of such a cluster. the cluster approach, as I said at the conference, to “Sometimes it is around stronger ports, sometimes not have only one definition of a European maritime it is around a stronger participation of technologi- cluster that will be the same all over Europe.”

11 Breaking Waves

Hamburg port boss is a firm believer of teamwork

TEXT MICHAEL HUNT PHOTO ANTERO AALTONEN

s chairman of the Port of Ham- like this kind of sporting competition. You Meier said one of the most beneficial burg at the mouth of the North can only win as a team. You cannot fight outcomes of the think tank was shared in- Sea, Jens Meier oversees Eu- as one port or one company. It’s the clever formation that will help reduce the ship- rope’s third-busiest maritime combination of expertise and letting some ping industry’s carbon footprint in the com- point of entry after Rotterdam new ideas in. ing years. By reducing traffic jams and the Aand Antwerp. Known as Germany’s “Gate- “We stay competitive because we are amount of empty trucks around ports, as way to the World,” Hamburg is also the not dependent on one client, one market. well as deploying smaller vessels to meet planet’s 15th-largest port, handling about We learn there progress working in a fair- the demands of modern supply chains, ports 10 million cartons annually. trade mode, and working together in a part- may become more efficient for the future. Celebrating its 830th anniversary on May nership.” “We have a big change coming in the in- 7, the Port of Hamburg is firmly established That is why Meier said he enjoyed partici- dustry from supply-chain management,” as one of the Europe’s most viable commercial pating in the Breaking Waves think tank that Meier said. “It’s no longer a chain. It’s more and cultural hubs, a source of pride and emula- was part of Slush 2018, the world’s largest like a supply community.” tion among the continent’s maritime cluster. start-up convention. He said the continent’s He explained that if a consumer wants The 52-year-old executive with a back- maritime leaders were able to come to a a sweater, it might no longer come from a ground in computer science and sports keeps consensus about the need to work together. central warehouse, but from instead culled the port humming through a time-honored “Many in the think tank saw that team- from a local store to create a new way of philosophy: work is there in the European cluster,” Meier solving delivery logistics. Teamwork. said. “Think tanks like this help you keep “The target is always to make the consum- “My approach is always one team, one the trust up. Trust increases over time and er happy,” Meier said. “If you get something success,” Meier said during a recent inter- when you have such meetings and learn out of China, you don’t care via which port view at Breaking Waves 2018 in Helsinki. each others’ behaviors, you become friends the container is coming in. You don’t care “There is competition, but you can only and friendships leads to close partnerships. about which logistics company will serve it survive in the worldwide competition when I believe that is one of the good factors for to you as the end user. You are interested in you cooperate with partners with fair trade the future.” when you can receive the parcel at home.” in an environment that must fit.” For example, Finland’s healthy maritime Meier said he also foresees better tech- To that end, the Port of Hamburg has industry could continue to prosper through nology and an influx of young minds such as teamed with Finnish multinational telecom- international cooperation. “I think the Finn- those attending Slush as means to a brighter munications firm Nokia on 5G technologies ish shipping industry does it very well,” he future for the shipping industry. as a way to address the future. said. “They are familiar with cruise vessels, “We have to bring in younger people,” “We’re thinking ahead with that with and special ships like and so he said. “What do they think of the future, Nokia for the next 10 years,” he said. “We on. I think to keep this level of competition customer and consumer behavior and what have to work on that step by step. We can- high in Finland, go in a cooperative way with the future will be? We must combine our not stop. It will never come to an end, but I ports like Hamburg to exchange knowledge.” expertise with their views of the future.“

12 “We stay competitive because we are not dependent on one cli- ent, one market. We learn there progress working in a fairtrade mode, and working together in a partner- ship.” My approach is always one ” team, one success.

13 Shipyard

Chairman of Oy Mr. Bernard Meyer: “Meyer going strong both in Finland and Germany”

14 The Meyer family-owned company Meyer Werft of Germany has been in the shipbuilding business since 1795. During the last several decades its emphasis has shifted to passenger vessels. Today, Meyer is one of the world leaders in producing specialized cruise ships.

TEXT EERO MÄKINEN PHOTOS MEYER

15 Shipyard

eyer operates today two yards in year when we took over the yard. By 2020 Meyer The four Managing Germany: the main yard in Papen- Turku will be able to produce two large cruise ships a Directors of the Meyer shipbuilding group, burg and a smaller yard in Warne- year. In Papenburg we are reaching already this year Thomas Weigend, munde, the latter for the construc- our expansion target by building two big cruise ships Dr. Jan Meyer, Bernard Meyer and tion of smaller vessels and large a year and one small size cruise ship. Our shipyard Tim Meyer. Mfloating sections for the Group’s other yards. in Warnemünde, Neptun Werft, is supporting Pap- In 2014 Meyer took a big step of expansion by the enburg and Turku with floating engine room units acquisition of the biggest yard in Finland, the Turku and they have been growing recently to supply the yard - another specialist yard for cruise vessels. demand of engine room units for Papenburg and will further grow for the increasing demand of engine Meyer Group with its three yards is going room units in Turku. Currently the whole Meyer through a major capacity expansion. What are group is employing about 7600 employees and will the key figures of the group after say 3 years? grow to 8500 by 2022. We will then be able to deliver The biggest capacity increase will take place in Fin- from Papenburg about 400,000 gross tons and Turku land where we delivered one mid-size cruise ship per about 400,000 gross tons each year.

16 The order book covers today exclusively cruise vessels. Will that be the name of the game also for the foreseeable future of Meyer group? Another risk Definitely our core business is building cruise ves- ” sels. Besides that in the last two years we delivered definitely is as well a small coastal ferry, a big innovative RoPax governmental ferry and innovative an LNG tanker. intervention. The cruise shipbuilding market has really exploded during the last four years. Does Meyer see that as a sustainable development costs. Especially the supplier market is over-heated that would continue and even intensify? and price level is not where it should be. Ship own- Shipbuilding was, is and will be in the future a cycli- ers are not forced to place new orders. As soon as cal business and the current order volume is also a the price level is getting too high they can also easily result of the low order book after the Lehman cri- wait with new orders. Therefore it is really essential sis So it is a natural phenomenon that after years to us and the whole shipbuilding cluster that we stay of low order income there are also a couple of years price-competitive. There are definitely big clouds with high order income. This is one reason is that coming up as we see in Europe many new small cruising really fits the current consumer market as shipyards building now smaller cruise ships as well cruising is a very comfortable nice and relaxing way and first contracts and a clear strategic goal of Chi- of travelling and seeing different destinations in one nese government supported shipyards to enter the holiday. It is and will be also in the future successful cruise shipbuilding market. The capacity for cruise as it offers very high value for money due to the very ships which is built up in China is completely out of efficient business model of the ship owners. And one balance to the demand and will destroy the market major difference to other shipping markets is that not only for shipyards that suddenly have too much the building capacity is limited. That secures that building capacity and not enough orders but also there is no over-supply of cruise vessels in a short in good years there is a high chance that too many time as we have seen in other markets like in the cruise ships will be built and enter the market and container or tanker market some years ago. by that ship owners will finally also be faced much more with the cyclical market. Up to now the limited One would think that the overall business building capacity for cruise ships was also very ben- environment must today be exceptionally good eficial to the ship owners because the cruise market with a never-seen workload and the improved was by that growing maximum with 5-7% per year prices resulting from the huge demand. Do and therefore the ship owners were also able to do you foresee any dark clouds for years to come? long-term planning because they were assured that MS Aida Nova, deliv- ered from Papenburg What are potential risks in the market, if any? not too much capacity will enter the market. Another to Aida Cruises in the Yes, the good news is: We are not short of orders and risk definitely is governmental intervention. Most of fall of 2018. The first we are in good market conditions at the moment our competitors in Europe are either partially or fully ever cruise vessel using LNG as primary fuel. with improved prices but also with much higher government controlled and supported and definitely the new competitors in China are heavily supported by their govern- ment while we are a family business and purely rely on our tradition, ex- perience and the strong ability to innovate, be agile and have a long- term business target to develop the company to secure it for the next generations.

It seems that Meyer very much concentrates on large cruise vessels while the small cruise vessel market also is extremely active. Why is that? Why not also small vessels? Our current order book goes from river cruise vessels with 3,000 gross tons, small cruise vessels with 50,000 gross tons via mid-

17 Shipyard

sized cruise vessels with 110,000 gross tons up to the nine ships which have been ordered by the Car- big cruise vessels with 180,000 gross tons and more. nival group - three AIDA ships and two P&O ships in So we have a big variety in our order book. Neptun Germany and two Costa and two Carnival ships for Werft in Warnemünde is specialist for cruise ves- Turku - and which are designed on a common plat- sels up to 15,000 gross tons. Meyer Werft covers the form being the first fully LNG driven cruise ship plat- spectrum from 20,000 to 180,000 gross tons and form in the world which was jointly developed by Pa- Meyer Turku from 100,000 gross tons onwards. We penburg and Turku design teams, and all the engine are very happy with our current order book of all siz- rooms being built at Neptun Werft. This integration es of cruise vessels, even though we are not active in process is developing very well and will continue. the expedition market at the moment. However, this market is extremely cyclical. There were more or less There have been quite big differences between no orders for more than 20 years and suddenly there the operational procedures and practices in is a huge order book and many small cruise vessels Germany and Finland as the facilities are quite will come into the market in the next years and the different. Harmonization is an obvious target. market will be saturated for a while. How is that process developing? Mr Bernard Meyer. The most visible difference between both yards is Meyer acquired the Turku yard about that we are building the ships in Papenburg in a 4.5 years ago. Was the cruise market covered building dock and the ships in Turku in an explosion already seen at that time or open building dock and that the integration of the was that a positive surprise to Meyer? subcontractors is slightly different. However, there At the time of the acquisition it was not foreseeable are also many areas where we had and have a simi- that the cruise market would develop so positively. lar approach like high amount of modularization, Sometimes we simply need to be at the right time at high focus on process efficiency, high focus on qual- the right place. ity and in-time delivery not only for the whole ship but also for the intermediate processes. Due to many What were the main reasons for the changes in ownership in Turku in the past there was acquisition in Finland? Why to Finland? a huge backlog of investments that we are catching Since I started my career in 1973 at Meyer Werft we up now. So Turku will get for example latest laser were always competing with the Turku shipyard first welding technology installed at the moment with all in ferries and gas tankers and later on many, many the learning and improvements from twenty years of years in cruise ships. The shipyard in Turku was al- laser welding experience in Papenburg compared to ways our hardest competitor because like we they new and innovative ideas from the production team have been always very innovative, very hard work- in Finland. ing people and delivering good quality in time - all the attributes which are also very important for us. Are there differences between Germany and It is not only important that we could grow with the Finland in the state support role and the acquisition of the new shipyard, very important for attitude of the states to shipbuilding industry? me was also that their DNA is very close to our DNA. What are they? Any improvements desired? Germany and Finland act very similar. They are both Acquisition in another country often includes supportive of the industry and both have more the a lot of business risks. How after almost five Northern European attitude of following interna- years has the case been with the Turku yard? tional rules and regulations extremely strictly with We had a good start as at the beginning the Finnish tight interpretations compared to the one or the oth- government had a stake as well in the shipyard. They er South European country which is stretching the helped us to understand Finnish business practices. rules. Therefore Germany and Finland are playing On the other hand, as the culture between Finland on the same equal field. Major difference between and Germany is not too different, we had a good start Germany and Finland is that due to the size of the and we are now very happy that we did this decision. country and economy the role of shipbuilding in Ger- many is insignificant and in Finland it plays an im- Obviously the operational integration between portant role. the yards in Germany and Finland is a must down the road for maximizing efficiency. Cruise ship construction requires very How is that process developing? specific skills. In today’s labor market Operational integration comes not from one year this must be a major challenge. How does to the other, specially if we are building such high- it look for years to come? Any differences ly complex products like cruise ships. However, the between Germany and Finland in this area? best visible example of the integration is the floating Yes, it is right, construction of cruise ships requires engine room unit which arrived here in Turku from very specific skills. We require workforces in all sec- Neptun Werft in Warnemünde last year as well as all tors and that is also the big beauty of shipbuilding

18 that each and every skill and task is needed to engi- neer, design, build and test such complex products, and you easily can see that on our homepage while screening open positions that the labor market in Germany is at the moment much tighter due to the As a privately much lower unemployment rate but due to our at- ” tractive conditions giving a long-term perspective owned company we are also an attractive employee and therefore we continue to find the right persons. There are not we have to solve many businesses where you are producing such in- our problems by teresting products and having such a long-term view of contracts up to 2020. ourselves.

We in Finland are very proud of our innovative activities and track record in cruise shipbuilding segment. How do you assess Meyer and Fincantieri with STX France under the contributions by in the past and the acquisition process together cover today potentially in the future? about 90% of all cruise ship new building The Finns have shown in the past that they are ex- volume. How likely is that the duopoly also tremely innovative and we are 100% sure that they will will continue in the future? be very innovative in the future too. Finnish education We definitely see other shipyards in the future there is top in the world and together with good and strong as well, starting from MV Werften in Germany but universities this is the basis for not only our but also also especially Chinese gonvernment-owned ship- Finland’s success. Our task is to give our employees also yards will have share in the future. the right platform to innovate and we are showing that with each and every ship delivery. Right now we have Differences between Fincantieri and Meyer? many innovations under development, which you will Meyer is a private group, Fincantieri is see afloat in a few years and we will show and talk about majority owned by the Italian state. Is this them when they are ready to present. difference an element in competition? Is there a real level playing field with European yards? Ships based on one and the same We should not touch about others. We definitely Three yards of the technical platform are being built nowadays know that we as a privately owned company have Meyer shipbuilding in Germany and Finland for a total of four to solve our problems by ourselves. This was our group: Papenburg/ Germany, Turku/ Carnival brands. What are the experiences strength in the past and will be our strength in the Finland and Warne- of this kind of rationalization? future. munde/Germany the last one for delivery Of course it helps to generate a good purchase power. of smaller vessels and However, the biggest effect will be later on for the The entrance of Asian yards to cruise-ship floating ”engine room ship owner as he saves a lot of costs with a harmo- construction has been discussed for the last units" for the other two big yards. nized fleet in spare parts but also in crew training. twenty years. Japan seems to be out and so is South Korea. But China is becoming an issue. How do you see the potential role of Chinese yards in the future and when? The difference between South Korea and Japan try- ing to enter the cruise market in the past compared to China nowadays is that the Chinese government has a long-term strategy to enter into that mar- ket and that the shipyards entering the market are government controlled. In Japan and South Korea the attempts were driven by commercially driven shipyards where after a proper risk analysis they had not started to enter the cruise ship segment or when they started and failed they have withdrawn. In China the whole case is completely different as the government support is so strong that for many years they do not need to make money with building cruise ships. They just have to fulfill their strategic approach with the full support of the government without any relation and correlation to normal eco- nomic standards.

19 Shipyard

How will Meyer tackle the upcoming Meyer group has today numerous competition from China? wholly owned subsidiary companies for Due to the nature of our family business we are ex- specialized operations like ship design, Innovation” tremely customer-oriented with the focus of long- cabin manufacturing, AC systems, interior term business relationship combined with a high accommodation, turnkey piping system combined focus to innovate and deliver always the best and production, painting etc. Is further expansion with high most efficient solutions for ship owners. In the end of delegation to subsidiaries anticipated? innovation combined with high quality and high re- What is the business rational of this quality liability will be a key factor of success and to reach development? and high that we have a very loyal, encouraged and highly mo- In the last twenty years we have created a very intel- tivated and innovative workforce and this will be the ligent and highly competitive and innovative ship- reliability backbone of our future success. building cluster with a good split between companies will be a which only deliver products to Meyer shipyards and Large cruise vessels are now being built in which are exclusive producers like the two cabin fac- key factor Europe at yards that build only cruise vessels tories, which are fully occupied by the own demand of success. and practically no other products. Does that and where we are completely relying on them as our indicate that the only way to build cruise single source suppliers. And we have in other areas vessels competitively is to build at yards other subsidiaries that compete with similar compa- dedicated to cruise ships only? nies in the market, which we use to develop innova- Large cruise ships definitely need a very special in- tions first. However, the biggest part of the business frastructure and also very special workforce. There- we will work together with specialists in the whole fore it is quite natural that a yard that will be suc- world and only for a few dedicated areas we will have cessful in that market is not only specializing the own subsidiaries or joint ventures and we feel very whole organization but also the shipbuilding cluster happy with this balance at the moment. around this ship type and due to the long lead time and the early commitment of cruise ship owners it You personally represent the sixth generation Laser technology based steel hull production in is quite difficult to have other products in the port- of the Meyer family in the history of the Papenburg/Germany’' folio as well at the same shipyard and the same slots. group. Obviously the seventh generation is already stepping in. Do you see a smooth transition? The smooth transition has already been proven since many years. My oldest son, Dr. Jan Meyer, is very successfully leading the shipyard in Turku while my second son, Tim Meyer, is focusing on the shipyard in Papenburg, and my third son, Dr. Paul Meyer, is CIO for all three shipyards and all affiliated compa- nies of the Meyer Group, making sure that our IT systems are fit for the future. So they all have al- ready taken over big responsibilities for years and we are talking a lot within the family, have a very good exchange, and my sons are running the day-to-day business and I can give my advice with 45 years of shipbuilding history when I am asked. The transition between my father and me worked extremely well and that helped me a lot to manage also the trans- fer to the next generation. This is all in good hands.

Finally, what overall message would you like to convey to the Finnish maritime industry cluster? Our aim is to secure long-term shipbuilding success in Finland. We are investing heavily in the shipyard in Turku and we will be a very reliable and long-term- oriented owner of the shipyard who permanently likes to develop and optimize to stay competitive not only the own shipyard, but together with all the hundreds of suppliers in the Finnish maritime net- work. We are happy to be in Finland and are looking forward to a long and fruitful cooperation.

20 Maritime Academy and Training Center Simulation and innovation are cornerstones of our training success.

aboamare.fi Shipyard

The LNG- powered Megastar, con- structed by the Meyer Turku Shipyard, com- plies with the ECA´s stricter emission control agreements that are also applied in the Baltic Sea.

The new Mein- Schiff cruise vessel is 10 per cent more energy efficient than her sister vessel, Meyer Turku’s order which was built in Turku one year book is full up until 2024 previously.

Meyer Turku is riding on the ccording to Tapani Mylly, Meyer’s Com- munications Manager in Turku, the ship- crest of a wave in the cruise ship yard will be operating at full capacity business, with an order book until the mid-2020s. Like other builders filled up to 2024. At the peak of of cruise ships, Meyer expects markets Ato expand in Asia – particularly in China – and eve- the economic cycle, the German rywhere else in the world. owner has invested EUR 200 “The number of passengers has been growing steadily for a long time and we anticipate the growth million to the shipyard. Following to continue in the future as well,” Mylly says. these investments, Turku will be In addition to the growth in passenger numbers, the markets will continue to need new cruise ships home to one of the world’s most as the oldest and smallest ships are decommissioned. modern shipbuilding units. The types of vessels will also change as environmental and efficiency requirements become stricter. “Ship sizes do not necessarily grow that much

22 Meyer Turku’s list of registered suppliers contains over 1,000 ” companies in various countries.

from the current 180, 000 – 200, 000 GT level. In natural gas (LNG). Meyer’s Turku shipyard is build- addition to these large cruise ships there is more ing cruise vessels that run on LNG. demand for smaller craft, for example expedition “Cruise passengers are increasingly aware of envi- cruisers.,” Mylly says. ronmental factors, such as citizens’ carbon footprints, Orders for cruise vessels will also change, and and this will pile the pressure on the marine industry.” ship owners will offer different services to different Tapani Mylly thinks that the competitive factors customer groups at very different prices. The market driving Finnish shipbuilding are solutions that take for cruise vessels offering expensive, high-quality account of energy efficiency and the environment. trips will grow. “ The environmental sector needs to take a leaps Environmental friendliness is an expanding part forward and we are ready to take them. For exam- of design and construction of cruise ships. Shipyards ple, the MeinSchiff cruise vessel, which was built in and ship owners are subject to growing requirements Turku, is 10 per cent more energy efficient than her for environmental friendliness and efficiency when sister vessel, which was built one year previously,” ships are designed and built. Energy consumption Mylly says. is becoming increasingly important. Tapani Mylly He says that better efficiency is the sum of sev- emphasizes new fuel alternatives, such as liquefied eral small things rather than one large factor. Cruise i

23 Shipyard

Designing complex cruise vessels is a long and intricate process. Meyer Turku does most of the initital phase design, in concept de- sign and basic design on it’s own. The client – the shipping company –has its own architecture in mind for the main aspects of the ship.

Meyer Turku: order book Year of completion, ship, client, gross tonnage

2019 , (Costa 1), ~180,000 GT ships are like small towns or floating hotels, so they Cabin modules made by a subsidiary need a lot of air conditioning. For this reason, the Meyer Turku subsidiary, cabin factory Piikkio 2020 energy efficiency solutions in the most recent Mein- Works, manufactures all the cabins to Meyr Turku Carnival Mardi Gras, Schiff focused on factors such as more efficient air ships. Piikkiö Works has been operating for three Carnival Cruise conditioning. decades and it employs well over 100 professionals Lines (Carnival 1), Designing ships – particularly complex cruise ves- in the area of cabin building. ~180,000 GT sels – is a long and intricate process. Meyer Turku does As stated previously, Meyer Turku is a fixture in most of the initial phase design, in concept design the future plans of Meyer family The family’s confi- 2021 and basic design on it’s own. The client – the ship- dence is reflected in its ongoing investment of EUR Costa 2, ping company –has its own architecture in mind for 200 million in making Turku an ultra-modern ship- ~180,000 GT the main aspects of the ship, such as the number of yard unit on an international scale. cabins and the main engines. “We expect to conclude the current investments 2022 “The rule of thumb is that as the project progresses by the end of 2019,” Tapani Mylly says. Carnival 2, further, the share of turnkey suppliers also increases According to him, the journey has not been all ~180,000 GT in the area of design. This is particularly true of the plain sailing. One difficulty has been recruiting ex- indoor spaces, for which design services are often pert workers. The industry is international, so Meyer 2022 bought in,” Mylly says. Turku has to compete with many other companies Icon 1, The target is naturally that both the shipyard and and industries for designers and other experts. Royal Caribbean, the subcontractors can make a profit from their de- “We have a couple of thousand employees and, ~200,000 GT liveries. Approximately 900 different companies are every year, we recruit a couple of hundred new peo- involved in building a cruise ship, and Meyer Turku’s ple. We also need foreign workers, as they often have 2023 list of registered suppliers is even longer: it con- exactly the types of skills that are lacking in Finland,” Mein Schiff 7, tains well over 1,000 companies in various countries. Mylly says. TUI Cruises, The high standard of expertise expected of new 110,000 GT recruits is demonstrated by the fact that Meyer Turku is constantly looking for more people with master’s 2024 degrees in engineering and project managing experts. Icon 2, According to Mylly, the shipyard’s subcontractors are Royal Caribbean, facing the same challenges. ~200,000 GT

24 Shipyard Shipyard fledgling RMC is now growing up

Rauma Marine Constructions is a Finnish shipbuilder es- sinki and . Our order book also includes a Ro-Ro pas- tablished in 2014. According to Jyrki Heinimaa, the Pres- senger ferry for Wasaline to operate on the route between ident and CEO, the young company has entered an exciting Vaasa in Finland and Umeå in Sweden,” says Heinimaa. phase – RMC has left the startup phase and has become a The first order in the shipyard’s new phase was for a growth company in shipbuilding. car-and-passenger ferry named Hammershus, which was The company has an excellent order book, which includes built for Molslinje, a Danish shipping company. Hammer- purchases by the and two car-and-passenger shus was built at the and completed in ferries, and letters of intent have been signed for all of these. summer 2018. The ships sails between Denmark’s main “We have almost one billion euros of contracts on our island and Bornholm. order book. We cannot say that our capacity is full until Until last summer, RMC also carried out work on sec- 2025–2026, but we have achieved a strong base level. How- tions of large cruisers for the Meyer shipyard in Turku. ever, a lot of work still needs to be done to ensure that the Heinimaa sees no reason for this functional partnership to letters of intent become a reality,” Heinimaa says, describ- end, providing that the customer needs more hull sections. ing an all-round excellent situation. “As I mentioned, although a solid baseline of work is RMC is carrying the torch of Rauma’s old shipbuilding guaranteed, we are still taking new orders as long as we tradition, and it specializes in building and maintaining are able to meet all of our obligations.” multipurpose icebreakers, car-and-passenger ferries and Heinimaa describes RMC as a technology firm that di- vessels for the Defence Forces. rectly employs around 100 maritime experts. In the back- The company has signed a letter of intent with the Finn- ground, the company has a trusted network of strategic ish Defence Forces on the construction of four corvette- partners, subcontractors and companies operating on an- class vessels. This warship project is commonly known in nual contracts. Finland as Squadron 2020. “RMC’s startup phase is over. We have pinpointed our “We are also building a large and fast car-and-passenger future challenges and we are now entering an exciting ferry for Tallink-Silja to operate on the route between Hel- growth phase,” Jyrki Heinimaa says.

The order book of RMC also includes a large, fast and energy effiecient ro-ro passenger ferry for Wasaline to operate on the route between Vaasa in Finland and Umeå in Sweden.

25 Shipyard

There are several projects for real ” icebreakers and other vessels with heavy ice classes, and Arctech is naturally interested in these.

he shipyard is completing an arctic tanker Arctech – project for Greek owners. The vessel is a condensate carrier with a high ice class (Arc7), representing a new generation High-rolling in of Arctic tankers capable of operating Tin the extremely cold-weather conditions and shal- low waters of the river estuaries along the Siberian the High Arctic coast. Sea trials are expected to take place in April. Arctech has delivered various ice-class vessels to The Arctech Helsinki Shipyard has a long Russian owners. According to Markku Kajosaari, SVP Sales, demand for such vessels is, unfortunately, tradition of Arctic expertise in icebreakers limited today. The shipyard is looking for new-build and high-ice-class cargo ships. The shipyard projects in which Arctech could use all the special currently has its sights on potential new capabilities of the Helsinki shipyard. “We have had several enquiries about small to orders of Russian LNG-powered icebreakers. medium-size cruise vessels intended for operations in remote areas and harsh conditions. These types of projects could be very suitable for us. There are also

26 the contract. However, even in this case, there will be very tough competition, as we have seen many times before. There are several advanced Russian shipbuild- ers nowadays,” says Kajosaari, playing down specu- lation of possible new orders in Helsinki. At the same time, there is strong demand for high ice-class cargo ships in the High Arctic but, unfortu- nately, some of these new vessels are so enormous that the facilities in Helsinki are not large enough. “We have built one cargo vessel for year-round operations in the Northern Sea Route. This vessel is the first tanker ever built at the Helsinki shipyard. There is increasing demand for high-ice-class cargo vessels operating in Arctic areas, but many of these vessels are too big to be built in Helsinki. Further- more, demand for smaller Arctic cargo vessels, like the condensate carrier currently under construction at Arctech, is more occasional.” The current owner of Arctech Helsinki Shipyard Inc is the Russian company United Shipbuilding Corporation (OSK). Until recently, the role of OSK in providing access to Russian markets and co-operation with shipping companies operating in Russian waters has been essential for receiving orders. However, according to Kajosaari, the sanctions imposed by US authorities have presented a chal- lenge for Arctech’s operations. “Our parent company has been on the US sanc- tions lists for some time now. This has also affected areas such as Arctech’s payment procedures and financing possibilities. It is important to note that neither OSK nor Arctech are affected by the trade policy measures imposed by the EU or the ,” Kajosaari points out. The shipyard has been working on an expedition is the cruise ship project with a Japanese shipping com- world's first icebreaker on the pany, but the schedule and details of the project are LNG. Polaris re- several projects for real icebreakers and other ves- still unconfirmed. fueled liquid nat- sels with heavy ice classes, and Arctech is naturally “Arctech has been in discussions about a techni- ural gas directly from the Tornio interested in these,” Kajosaari says. cally advanced and environmentally friendly cruise terminal for the Russia needs to replace its older generation of ship project with a Japanese shipping company. We first time. nuclear icebreakers with newer vessels. According hope the discussions will lead to favorable results to the shipyard’s information, as many as four new in the future.” LNG-powered Arctic breakers may be ordered for As the expedition cruise ship market is develop- delivery to Russia. However, the commissioner of ing rapidly, Kajosaari believes there will be room for these vessels will have the final say over which ship- innovative ship concepts and additional new builds. yard gets to build the icebreakers. “However, as the average size of the vessels is “If the ships are ordered by a Russian state-owned rather small, the volume of new capacity is still rea- operator, they will be built by a Russian shipyard,” sonable,” he said. “A great deal of the new capacity Kajosaari said. “In this case, Arctech could only be is needed to replace ageing tonnage.” involved as a subcontractor, as was the case in the Kajosaari said he thinks that developments in icebreaker Murmansk, where the main contractor regulatory criteria and increases in the number of ex- was the Russian yard in Vyborg. perienced and environmentally aware customers will “But if the commissioner or the operator is a Rus- create pressure to launch Polar Code-compliant ves- sian private company, Arctech has a chance of winning sels with modern environmentally friendly solutions.

27 Repair shipyard

Northern Europe’s ’s dock basin largest repair is 265 metres long and 70 metres wide, so there is space to shipyard is dock more than one vessel at a going through time. a period of

growth is 10–14 days, but it often takes much longer to pre- pare for maintenance and repairs,” Kosonen says. Turku Repair Yard’s dock basin is 265 meters long and 70 meters wide, so there is space to dock several vessels at a time. Turku Repair Yard Ltd, tucked away in Naantali Vessel safety has reduced the in Southwest Finland, is acquiring new number of ships running aground customers from beyond the Baltic Sea while Finland’s coastline is notorious for its shallow and rocky waters. However, every year there are fewer expanding its service segments for existing and fewer ships arriving in Naantali for repairs due customers. to running aground. “As vessel safety has improved, the nature of ship repairs has changed since the olden days of ships be- ing damaged at sea,” says Kosonen. According to Oskari Kosonen, the managing di- As for other forms of shipbuilding, environmental rector, the outlook is currently very good. Among factors are increasingly important. This can be seen in the company’s regular customers are shipping com- the prevalence of sulfur scrubbers and ballast water panies operating passenger ships, tankers and ice- purification systems, which are both being installed breakers. These include Tallink-Silja and Viking Line, and modernized as a brisk rate. OSM Ship Management Finland Ltd, which previ- “Ships have also had sulfur scrubbers installed in ously operated tankers for Neste Shipping, and Arc- Naantali, but our other daughter shipyard in Klaipeda tia, the organisation controlling the State’s icebreak- has installed even more of them. Our group of com- ers. panies consists of three repair shipyards located in “We also intend to acquire new ship-owning cus- Naantali, Klaipeda and Tallinn. This is a competitive tomers from other parts of Northern Europe. One advantage for us because we can provide our custom- advantage for us is that our shipyard is right next ers with services according to which of the shipyards to Naantali harbour, so the fairway remains open in has spare capacity,” says Kosonen, describing BLRT the winter,” Kosonen says. Grupp, the Estonian owner of Turku Repair Yard. In addition to scheduled repairs and dockage, the In addition to repairing vessels, Turku Repair Yard company’s service segment has been constantly ex- also dismantles ships, and this activity is subject to panding. For the company, service means offering a increasingly strict regulations. The company is in- 24/7 on-call service and being able to dispatch ship volved in an EU project through Business Finland, repairers to work in other locations. and last year it took a very important step forward “Repairs are seasonal in the sense that owners of when it joined the list of ship scrappers approved by passenger ships prefer to bring their vessels to us in the European Commission. January, while owners of tankers use us in the spring Turku Repair Yard Ltd employs over 50 maritime or autumn. Icebreakers understandably arrive in the professionals and an enormous number of subcon- summer. On average, the dockage period for repairs tractor personnel on its projects.

28 Shipbuilding and design expertise

Foreship has been involved in more than ten polar and ex- pedition cruiser projects in differ- ent parts of the world.

Foreship’s strength lies in passenger and specialist vessels

The ship design company Foreship has plen- withstand harsh conditions. It must be able to ty of demanding projects all over the world. operate to a tight schedule in narrow, freezing The company is currently working on concept fairways and often in bad weather conditions. designs for cruisers, cruise vessel conversion ”In fact, “New-build projects begin with a meeting projects and consulting for shipping compa- very few with the shipping company to identify the nies to monitor the design of new-build ships. various resources, such as the transportation According to Lauri Haavisto, the man- ship owners requirement and vessel type, and the engine aging director, polar and expedition cruisers ultimately equipment and fuel alternatives,” Haavisto have provided a large amount of work recently. operate said. “The very first output of the meeting is Foreship has been involved in more than ten often just a single sheet of A4, and the project polar and expedition cruiser projects in differ- polar-class develops from there.” ent parts of the world, either as the designer passenger “The shipyard only enters the picture once or as a consultant to the shipping company. ships in the the client has conducted a competitive tender- “In fact, very few ship owners ultimately ing process.” operate polar-class passenger ships in the ice. ice. Wasaline’s vessel will be built by RMC, a The name has achieved an established status Finnish company based in Rauma. in accordance with the IMO’s polar code among vessels that Foreship has around 100 ship designers on its payroll, and are capable of operating in different types of icy conditions,” they work all around the world. The company has participated says Haavisto. in design and conversion work on vessels for cruise ship- One car-and-passenger ferry that is highly capable of op- ping companies such as the Royal Caribbean Cruise Line and erating in the ice is a new build for Wasaline. Foreship has cargo-and-passenger shipping companies such as TT-Line. been involved from the very start, serving the ship owner Foreship has subsidiaries in the USA and , and as a technical consultant and designer. its net sales were approximately EUR 12.6 million last year. The ferry will traffic the Kvarken link between Sweden The private company is owned by its personnel and execu- and Finland, and it is a prime example of a vessel built to tive management.

29 Shipbuilding and design expertise

Design bureau Surma´s areas of expertise are electromagnetic environmental effects and the management of such effects, as well as analysis and simulation of marine warfare in general.

Surma is the market leader in its niche

Finnish design bureau Surma is the world market “Both of these projects are very important to us. leader in its own field of managing ships’ combat sur- The vast majority of our worldwide net sales come vivability and related applications. One major event from services,” Tornivaara says. for Surma in 2018 was its acquisition by DA-Group, “Our competitors are also doing marketing in this which made Surma a subsidiary of the electronics field, so we do not need to take care of it all alone.” company. Surma previously had 21 owners and the DA-Group’s net sales are more than10 million euros merger reduced this to one. with a workforce of about 120 employees. Surma, has According to Kristian Tornivaara, who will con- sales of about two million euros and 13 employees. tinue as CEO, Surma’s products effectively comple- ment the parent company’s arsenal, which includes embedded industrial systems with microwaves and other electronics, as well as technology that goes into space along with satellites. “Surma is a good addition to DA-Group’s range of Luckily, our defense equipment. Our areas of expertise are electro- competitors are also magnetic environmental effects and the management ” of such effects, as well as analysis and simulation of doing marketing in marine warfare in general,” Tornivaara says. this field, so we do not Surma delivers products and services on four con- tinents and is in commercial negotiations on six con- need to take care of it tinents. At the moment, the most significant products all alone. are the Finnish Navy’s Squadron 2020 procurement and an icebreaker being built for the Chilean navy.

30 Shipbuilding and design expertise

Norsepower sailing into the eye of the storm

Norsepower has modernized an old invention, and it of Norsepower’s invention. The tanker sails on the is hitting the market at the perfect time. The compa- ocean winds using large rotor sails, saving a huge ny has developed a rotor sail that applies new mate- amount of fuel. For rotor sails, size and quantity are rials and automation to a Flettner rotor, saving ship the decisive factors. owners money and reducing emissions. “And when ship owners have more of these ves- According to CEO Tuomas Riski, the company sels, rotor sails can save more money and reduce has been able to demonstrate the benefits of its rotor emissions,” Riski says. sail through its deliveries since 2015. The question Apparently, it takes time to get used to the tall cyl- is how the company will be able to make the most of inders that are installed on ships. However, beauty is the positive publicity it has received. in the eye of the beholder, and the mechanical sails “The rotor sail works on vessels of all kinds, from also serve as an advertisement for Norsepower at Ro-Ro vessels, tankers and bulkers to passenger and sea and in harbors. cruise ships,” Riski says. The sails have been installed The IT and automation devices for the sales are on a Maersk tanker and on the Viking Grace cruise always made in Finland. Production has been trans- ship, among other vessels. ferred to the locations where ships are built for envi- “Viking Line is a good ship owner for our prod- ronmental and cost reasons. The European production uct because passengers can see the environmentally centre is located in Poland and, this year, Norsepower friendly invention in operation. A mechanical sail is will open a new center in China. also a major image question for shipping companies In the last couple of years, the Helsinki-based operating cruisers and passenger vessels.” he said. company has recorded net sales of about one million Conversely, the rotor sail fitted to Maersk’s tank- euros. The company has 12 employees. er, the M/T Pelican, reveals the enormous benefits

Tall cylinder- like mechanical sails can also serve as an ad- vertisement for Norsepower at sea and in harbours. Bore's Estraden was the first ship to have the Norsepower rotor sail installed six years ago.

31 Shipbuilding and design expertise

Over the years, Evac has grown through both organic growth and acqui- sitions. The acquisition of Cathelco extends Evac’s offereing in three main areas: marine growth prevention systems, hull corrosion protection sys- tems, and bal-last water treatment systems.

Evac - acquisitions and strong organic growth

Evac maintained a strong growth pattern in 2018 tems, hull-corrosion protection systems, and ballast- The” Evac with sales turnover rising to 156 MEUR in compari- water treatment systems. Evolution son with 105 MEUR in 2017. All business areas met The first area prevents the buildup of bio fouling in or exceeded their sales growth targets, recording pipework and suppresses corrosion; the second pre- ballast water about 20 % increase in sales in 2018. vents hull corrosion and reduces vessel fuel consump- treatment The company continues to build its reputation as tion; the third removes organisms and pathogens from the world’s leading supplier of integrated water and ballast water using UV and filtration technologies. system has waste management systems and services for ships, In January, Evac acquired Transvac Systems, a enormous as well as offshore platforms and buildings. UK business specializing in the distribution and The acquisition of Cathelco in May 2018 with a servicing of wastewater treatment, sanitary and future sales turnover of 30 MEUR was another major step in en- ballast-water treatment systems for ships and off- potential. larging Evac’s offering. This increased the product shore platforms. portfolio with the addition of marine growth pre- “Transvac demonstrates the emphasis that we vention systems, corrosion protection systems and are placing on being life-cycle partners for our cus- ballast water management systems (BWMS). tomers, providing services from initial design and “Cathelco’s products provide a natural extension installation to maintenance and refit in later years”, to our complete clean-tech solutions, because they said Gardemeister. reduce maintenance costs and extend the life of hulls In early 2019, Evac will install a water-ballast man- and other shipboard equipment”, says Evac CEO and agement system for Quark Expeditions, the leading president Tomi Gardemeister. operator of polar expedition cruises, to ensure it will “Looking to the future, the Evac Evolution ballast have environmentally friendly ships. water treatment system developed by Cathelco, has Quark’s new 200-passenger ship, built by Bro- enormous sales potential as ship owners worldwide dosplit in Croatia, is scheduled for a 2020 launch. comply with legislation to prevent the transfer of Quark, which sails in some of the world’s most frag- invasive species.” ile environmental areas, is committed to becoming The acquisition of Cathelco extends Evac’s offering environmentally friendly with solutions from Evac. in three main areas: marine-growth prevention sys-

32 Shipbuilding and design expertise Rolls-Royce is guiding digital seafaring

Rolls-Royce Marine’s unit in Finland has long been ducing large propeller devices for icebreakers and The Chief Technology a leader in the fields of autonomous vessel tech- Arctic research vessels. Officers of 2019 are nology and propeller devices. The Marine group The largest and most efficient propeller devices Rolls-Royce Marine’s is being transferred to Kongsberg, a Norwegian manufactured by Rolls-Royce in Rauma are ARC- Sauli Eloranta and company, but the experience amassed in Finland type devices, which are intended for icebreakers, Canatu’s Ilkka Varjos. will flourish under the new owner. offering a power output of 7.5 MW and weighing The CTOs of 2019 The company develops autonomous unmanned 190 tons. have been chosen by a ships and land-based control centers. The Finnish Azimuth propeller devices rotate 360 degrees jury of Finnish technol- partners include VTT Technical Research Centre of around their vertical axis, providing propulsion ogy influencers. Finland Ltd and the University of . Rolls- and steering without requiring a separate rudder. Since 2010, the CTO Royce has also set up a research center in Turku of the Year award has to study remotely controlled and autonomous ves- Digital technology guides seafaring been given to an inspir- sels and artificial intelligence. The center employs Last year, Rolls-Royce announced its intention to ing leader whose work numerous experts in the field. sell the Marine group, which includes the Rauma has made a significant This advanced technology will lead to a commer- propeller business, to Kongsberg in Norway for a contribution to their cial autonomous vessel. Rolls-Royce is pioneering price of GBP 500 million. company’s technological the development of unmanned and autonomous The Marine group’s net sales in 2017 were GBP capabilities. This year, ships, and its first commercial ships should appear 817 million, leading to a net loss of GBP 70 million. Rolls-Royce Marine’s in the near future. The net sales of the Finnish company were EUR Head of Innovation and In spring 2018, Rolls-Royce formed a partner- 252 million and the net profit was EUR 11 million. Technology, Sauli Elor- ship with Finferries, which operates connecting The leader of the Marine group,Mikael Mäki- anta, was awarded the ferries for the Finnish State, with the aim of op- nen, continues to believe that the business will title of CTO of the Year timizing the safety and efficiency of Finferries’ fully flourish in forthcoming years. in the large-scale en- ships. The partnership is known as Safer Vessel “The marine industry is entering a new era and terprise category, while with Autonomous Navigation (SVAN). digital technology will transform seafaring. Rolls- Ilkka Varjos, CTO of Royce has played a leading role in this development. Canatu, was chosen as Further investments in propeller devices Kongsberg can take the business to the next level,” the winner in the SME A couple of years ago, Rolls-Royce announced that Mäkinen says. category. it would invest EUR 57 million in producing az- The Boards of Directors of both companies have The two winners are imuth-propeller devices in Finland. The Rauma approved the deal, which will be concluded this year. united in their approach unit has specialist expertise in designing and pro- of using research in prod- uct development and their strong endeavour to Rolls-Royce is build ecosystems. pioneering the development of “Rolls-Royce Marine unmanned and utilises networks to autonomous ships, and its first guide an old, established commercial ships sector into a new era. should appear in the near future. Meanwhile, Canatu is An artist's vision a pioneer in its use of of a future mer- networks to create and chant vessel. develop an entirely new, groundbreaking future sector. Both compa- nies have built bridges between academia and business in a compelling way,” says the jury chair- person Jaakko Hirvola from Technology Indus- tries of Finland.

33 Shipbuilding and design expertise

Elomatic has collabo- MV Werften has rated with NYK Group split the design to create an emission- work for the gi- free cargo ship, the ant cruise ship NYK Super Eco Ship into two roughly 2050. A global-class equal parts, each cruise vessel being worth approxi- built by MV Werften mately EUR 17 for Star Cruises. million. Elomatic - powering ahead in ship design

Elomatic, a design company with nearly 1,000 em- new and emerging technologies? ployees, is one of the world’s leading ship design- “The shipping industry has long been aware of ers. Although competition from within the EU and things like the upcoming IMO’s emission limits and around the globe is becoming constantly tougher, the Ballast Water Management Convention, for which Stricter” the outlook for Elomatic is good, says Rami Hir- the transition period was extended,” Hirsimaki said. agreements simäki, Senior Vice President, Marine & Offshore “The IMO is a specialized agency of the UN, backed and new and member of the company’s management team. by all maritime operators and flag states. The IMO’s “As a multidisciplinary bureau, we have deep and projects are very important for everyone within the technologies broad expertise to execute even the most complex maritime industry. mean more engineering projects. We are the largest independent “It is good when stricter agreements and new tech- work for design and consulting office,” Hirsimäki says. nologies emerge because they mean more sustainable He said cruise-ship design is heading in an excel- shipping more work for designers and engineers.” He designers lent direction. Cruise ships are complex entities, and does not deny that certain parties may be milking and Elomatic either designs them independently or in every last drop out of the extended transition peri- engineers. collaboration with qualified partners. ods they have demanded. Elomatic’s most recent cruise ship contracts are Cadmatic offers 3D-modelling software for ship connected to the second Global-class cruise vessel and plant design. This software was originally devel- being built by the German shipyard MV Werften for oped by Elomatic, but it was Cadmatic that brought Star Cruises. With a gross tonnage of approximately it to a global prominence. 200,001, the vessel is among the world’s largest cruise “We have really good user-developer relationship ships. The new-build project is due for completion in with Cadmatic. We are keen to use Cadmatic’s soft- 2020, and Elomatic’s EUR 17 million contract covers ware but if a customer wants us to use other tools, basic design and, systems engineering, detail design we can do that as well,” explains Hirsimäki. and technical support at the shipyard. Elomatic Group’s net sales in 2018 increased by 12% to more than EUR 81 million. During the financial Strict regulations are good for the industry period, the company recruited 162 new employees, Ship projects take a long time and require major bringing its workforce to more than 950. Elomatic will investments. How can this be reconciled with the continue actively recruiting personnel next year in stricter constraints imposed by the authorities or order to meet the needs of an expanding order book.

34 Shipbuilding and design expertise

Arctia’s newest multipurpose icebreaker is Polaris. Built in 2016, Polaris is the world’s first icebreaker run- ning on LNG. Foreign trade depends on icebreakers

Arctia guarantees passage throughout the winter, whatever the conditions.

rctia is a specialized ship owner breakers were in use and three were wait- “It is too early to say that LNG is the offering icebreaking and oil-spill ing in reserve. icebreaker fuel of the future but, so far, our prevention and response servic- “The need for icebreakers also depends experiences with gas as a marine fuel have es, as well as assistance services on foreign trade cycles. In the last couple of been entirely positive. We are closely moni- in harbors. The main task for the years, import and export activity has been toring the development of LNG distribution Afleet of icebreakers is to keep Finnish waters good, and this has brought extra tonnage chains on the Baltic Sea,” Höijer says. open throughout the winter. Climate change into Finland’s territorial waters on ever- is not about to make icebreakers redundant lighter vessels. And these new customers Meritaito - specialist – in fact, it may even increase the challenges need the help of icebreakers,” Höijer ex- in its own field faced during the winter. plains. He adds that the engine power of At the turn of 2019, the Finnish State Talking about icebreakers may seem a vessels has a major impact on their ability merged Arctia with Meritaito Ltd, anoth- little passé in the current climate of global to get through ice. er of the specialist shipping companies in warming. However, Kim Höijer, Arctia’s Act- Icebreakers age in the same way as other its ownership. Meritaito specialises in ma- ing CEO, says that this is far from the truth. vessels. The average age of the icebreaker fleet rine surveys, fairway maintenance and oil “All of our forecasts indicate that ice- is fairly high and the owner – the Finnish spill recovery. The merger made Meritaito a breakers will be needed in Finnish waters State – has set the goal of updating the entire wholly owned subsidiary of Arctia. for a long time to come. No two years are fleet by 2030. However, Kim Höijer warns According to Meritaito’s CEO, Hannu exactly alike, which is why the challenges against taking this statement too literally. Ylärinne, the company has extensive ex- faced during the winter may vary quite dra- “Updating does not mean replacing old perience in recovering oil in icy conditions. matically. Even in milder winters, winds can vessels with new ones. Instead, it refers Oil spill recovery is difficult in open waters, compact ice into ridges, which make for dif- to extending the life cycle of the fleet,” he but it is even more challenging in icy waters. ficult conditions,” Höijer says. explains. “Polaris is equipped with a built-in oil spill By way of example, he points to the win- recovery system. The vessel sails through the ter of 2017–2018, when Finland’s entire LNG suits well for icebreakers, too ice side-on and collects floating ice into an fleet of icebreakers was working to remove Two of Arctia’s vessels – Fennica and Nor- opening in the hull via brushes, which take the slushy snow accumulating in shipping dica – are multipurpose icebreakers built the oil into tanks. The rate of oil collection fairways. This year, it seemed for a long time in the 1990s, and they have been chartered is highly dependent on the type of oil. Crude that winter would never arrive. However, the in summer times for offshore work. Due oil, diesel oil and other oil products behave situation suddenly deteriorated in January to the disappointments over the last few very differently in icy waters,” Ylärinne says. 2019 and the icebreakers were called back years, Arctia has decided to renew the oper- Finland is well equipped for environmental into action. As the old saying goes, the bite of ating model and refocus the sales activities protection and oil spill recovery. Both Höijer the winter can only be judged in the spring. of the offshore business to adapt to the dif- and Ylärinne most agree on the need for the The harsh winter of 2017–2018 is also ficult market conditions. According to Kim service, there are too few parties willing or reflected in Arctia’s net sales, which jumped Höijer, freight levels in the offshore indus- capable of paying for the preparedness. Arc- ten million euros above the regular level of try are low and there is plenty of tonnage tia and Meritaito do have some contracts EUR 40 million. around the world to compete with Arctia. for taking care of these duties, but there is Arctia’s newest multipurpose icebreaker room for more – perhaps through insurance Foreign trade is dependent is Polaris. Built in 2016, Polaris is the world’s companies. on open first icebreaker running on LNG. In winter Meritaito’s fleet consists of 150–200 ves- Finland’s icebreaker fleet includes eight 2019, Polaris began bunkering liquefied sels of different sizes and types, and the heavy icebreakers and one harbor icebreak- natural gas at the new LNG terminal in company recorded net sales of EUR 33 mil- er. In March 2019, five of the heavy ice- Tornio on the coast of the Bay of Bothnia. lion in 2018.

35 Shipbuilding and design expertise

As the market- leader in 3D design software and information management solutions in the marine industry, Cadmatic has around 1,000 customers in 58 countries.

Cadmatic's all software devel- opment work is done in Turku, Finland and in Cadmatic is on the the Netherlands. crest of a digital wave

Cadmatic, a provider of design, engineering and in- ship owners. We have approximately 150 employ- formation management software for the marine and ees, around 50 of whom work in Turku, Finland, plant industries, believes in data-driven shipbuild- and 40 of whom are in the Netherlands. All software ing. And why not? The company has the wind at its development work is done in these two countries,” back with its software products, which improve the Rantala says. quality of design and information management and The rest are in ten countries. reduce delivery times. From Finland’s perspective – and elsewhere in Eu- Thanks” to According to Cadmatic’s CEO, Jukka Rantala, rope for that matter – the construction of cruise ships digitalisa- large data models and enormous volumes of data has been booming for some time now and it shows has long been the norm at shipyards. Digitalization no sign of abating. Somewhat surprisingly, Cadmat- tion, ships is moving forward in the marine industry, just as it ic’s future is not dependent on the cruise business. will be is in other sectors. Automation is reducing the num- “Ultimately, cruise vessels account for just a frac- designed ber of routine tasks that ship designers need to do. tion of the global shipyard industry,” Rantala said. “Thanks to digitalization, ships will be designed “Shipbuilding has suffered quite a downturn over the and built and built without any paper being involved. Data is last few years. Now there are signs of a recovery in without transferred from the designer’s desk directly to man- orders for cargo ships, which is good for Cadmatic be- any paper ufacturing and production. Our software solutions cause our soft- ware products and tools are intended make us very competitive in the areas of design for for designing all vessel types. being ship structures and handling large data models and The same can be said of Cadmatic’s customers. The involved. data volumes on major projects. We also have good Finnish company is able to help shipyards to solve support for modern networked operating models, their problems all over the world. where dozens or even hundreds of networked com- “Recently, we have acquired good new customers panies and suppliers are responsible for designing in Europe, as well as in Asia. For example in Japan the and building a ship,” says Rantala. shipyards are locked in tough competition with their Cadmatic’s position as the market-leading pro- Chinese counterparts. Labour costs are low in China, vider of 3D design software and information man- whereas they are not in Japan. That is why Japanese agement solutions in the marine industry is reflected customers need more automation, and that is where in its customer base: the company has around 1,000 Cadmatic steps in,” Rantala says. customers in 58 countries. Around the world, there Cadmatic belongs to the Finland-based Elomatic are approximately 450 shipyards in active operation, Group. Elomatic owns 53% of the company. In 2018, and around 200 of them use Cadmatic’s software. Cadmatic’s net sales increased by 30% to approxi- “Our customers are shipyards and the design and mately EUR 20 million. More than 90% of the com- engineering offices that serve them, as well as some pany’s products are exported.

36 Shipbuilding and design expertise is trusting in LNG in northern waters Design company Aker Arctic’s strength Ice-reinforced tonnage for the High Arctic is its ice laboratory, which is unique on The second major LNG project that Aker has had a hand in is related to the ice-reinforced tanker tonnage purchased a global scale. Thanks to the Helsinki by Novatek, a gas company, for its LNG shipments to and ice basin, the company has extensive from Yamal. experience designing icebreakers and “That project began in 2005, so it is absolutely not a specialist vessels that sail through ice. one-day turnaround. We spent three years designing new tankers, after which Daewoo’s shipyard won the tender competition. Since then, LNG tankers have been built in ccording to Reko-Antti Suojanen, the com- South Korea. Our collaboration with Novatek and the other pany’s CEO, one upcoming trend is the growing Russian parties has gone very well,” he says. importance of LNG in Arctic waters. The United States is also planning to buy a new polar ice- breaker, and President Donald Trump’s government has suc- “In northern waters, there is already more ceeded in securing funds for the ship from Congress. Accord- Agas exploration than oil exploration. The number of gas ing to US law, the icebreakers under the supervision of the shipments in icy waters is increasing, along with the use US Coast Guard must be built by American shipyards. Three of LNG as a fuel for vessels,” Suojanen says, describing the shipyards are involved in the competition to build the polar changes underway in seafaring related to environmental icebreakers, and Aker has a design agreement with one of them. and energy needs. Aker Arctic Technologies is well prepared for these Vuosaari ice basin put in good use trends. Firstly, the majority of the world’s icebreakers are As mentioned previously, the heart of the design bureau’s built in Finland, and the company has been involved in specialist expertise is a 70-metre-long ice basin in Vu- designing them. Secondly, Russia and the USA are design- osaari, Helsinki, where scale models are tested for Aker as ing new polar icebreakers, and Aker Arctic has ready-to-go well as for external clients. concepts for both. Recently, the basin has been used to test-drive scale “Russia is replacing its 40 MW nuclear icebreakers, models of autonomous vessels. According to Suojanen, a Taymyr and Vaygach, which were built at the end of the large number of experiments of similar autonomous mod- 1980s in Helsinki for Rosatomflot. Russia is preparing to els are planned for the future. purchase two large, LNG-powered icebreakers,” Suojanen One significant area where Finnish technology is at the says, adding that the vessels could even be built at USC’s forefront of international development is oil recovery in shipyard in Helsinki. icy waters. In Suojanen’s opinion, oil recovery is difficult “The new icebreakers are approximately 160 meters long enough in open waters, let alone in icy conditions. and 31 meters wide. They will have very powerful engines “The brushing devices produced by Lamor, a Finnish com- and large fuel tanks. Previously, it was not possible to pany, have proven themselves in practice in icy waters,” bunker LNG in northern waters, but the situation has Suojanen says. He notes that LNG has the advantage turned on its head since the Sabetta terminal opened over oil in this area. on the Yamal Peninsula,” Suojanen says of the fuel “If there is a leak, the liquefied natural gas solutions available. dissipates into the atmosphere of its own ac- cord, so there is no need to scrub it out of the sea.” Russia is prepar- ing to purchase two large and very powerful LNG-powered icebreakers for the Northern Searoute.

37 Marine industry

Wärtsilä is creating smarter shipping

Technology giant Wärtsilä is one of the leading suppliers of smart technology and life cycle solutions on the marine and energy markets. The marine industry is undergoing major changes due to business networking, new business models and stricter environmental norms. In among this upheaval, Wärtsilä is leaning on its vision of smart shipping.

he basis for Wärtsilä’s activities is the maintenance vessels, as well as the onshore gas in- Smart Marine vision, which is based on dustry facilities. digitalisation and seeks to enhance the The stricter emission requirements imposed by safety of shipping, mitigate environmen- the IMO have been widely known for a long time. tal impacts and boost efficiency. According to Juha Kytölä, Wärtsilä Marine’s prod- TAccording to Juha Kytölä, Wärtsilä’s Director in uct development work has long focused on designing Marine Business, one major milestone for the com- new, cleaner energy solutions. pany was its acquisition of Transas, a British company. “The number of LNG-fuelled vessels has already The transaction was completed for EUR 210 million increased, and we will see many more such vessels in spring 2018 and placed Wärtsilä among the major in the near future. Nowadays, whenever new-builds players in smart shipping. are considered, LNG is always an option.” “We already had a large amount of expertise in this However, there are alternatives. Kytölä notes that sector, but the Transas acquisition brought hundreds Wärtsilä is the global market leader in exhaust gas of specialists working solely on marine software to scrubbers. Ships equipped with scrubbers will be our company. Transas bundles together navigation, able to use fuels with a higher sulfur content even training and simulation solutions, as well as traffic after 2020. management systems for smart technologies. Now, “Environmental requirements are becoming sys- instead of designing smart ships, we have the capa- tematically stricter. The limits for sulfur in fuel were bility to design smart fleets,” says Kytölä. announced well ahead of time. Ultimately, it boils Other development steps have included tests of down to the decisions made by ship owners on wheth- automatic port arrival solutions and a project to de- er they want to use cleaning technologies or pay more velop an autonomous port tugboat. “We now have the capability in Wärtsilä to design autonomous vessels with the help of our advanced automation and positioning solutions. The main fo- cus is however not to replace skilled personnel but Now, instead of to use vessel automation in ordel to increase safety designing smart ships, at sea,” says Kytölä. ” The company’s customers are ship owners, ship- we have the capability yards and ship management companies. The cus- to design smart fleets. tomer base includes traditional merchant ships, gas tankers, cruise ships and passenger ferries, warships and specialized vessels. In the energy industry, Wärt- silä serves offshore installations and the associated

38 Marine industry

for fuel. In the marine industry, these decisions are The combination of Wärtsilä 31DF engines, hybrid often left until the last minute,” Kytölä says. propulsion and LNG and BioLNG fuels makes the ship a prime example of efficiency and sustainability as Ultra-modern ship projects it enters service on the route between Finland and The marine sector is a flurry of activity. Wärtsilä is Sweden. Carbon dioxide emissions will decrease by involved in numerous projects to design and develop more than 50 per cent compared with the ship that ultra-modern vessels. One of the most interesting of currently operates the route. these is Wasaline’s new RoPax vessel, which will be “This ship represents a complete Wärtsilä life cycle one of the most efficient and ecologically sustainable solution with the minimum possible environmental ships in the world. impact. This is an important recognition of Wärtsilä’s One of the ship’s most important features is its Smart Marine approach in which digitalization is used hybrid-propulsion solution. This includes four very to create efficiency, lower costs and environmentally powerful Wärtsilä 31DF multi-fuel engines, which friendly performance,” says Henrik Wilhelms, Wärt- can run on liquefied natural gas (LNG) as well as bi- silä Marine’s Director of sales. ogas. The diesel version of the Wärtsilä 31 engine is Another interesting project with an important the world’s most efficient four-stroke diesel engine environmental perspective is the design of a modern according to Guinness World Records. depot ship for krill-fishing vessels operating in the Wärtsilä is also providing LNG storage, supply and Antarctic waters, commissioned by Aker BioMarine, control systems for new-builds, as well as thrusters, a Norwegian company. catalyzers, control systems and integrated electrical The new ship will be 168 meters long with a dead- and automation systems, which include an energy weight tonnage of 20,300, and it will meet the IMO’s and power management system for optimizing the Polar Code requirements. Wärtsilä’s hybrid solutions use of the hybrid solution. ensure sustainable development, and the reason they

Wärtsilä is in- volved in numer- ous projects to design and develop ultra- modern vessels, such as Wasa- line’s new ropax vessel and the design of a mod- ern depot ship for krill fishing vessels operating in the Antarctic waters.

39 Marine industry

Onshore, Wärt- silä is building a new R&D and pro-duction cen- tre in Vaskiluoto, Vaasa. The site will be known as the Smart Tech- nology Hub and it will be taken into use by the end of 2020.

were selected was that they are the best way to ensure from among this number. In the first phase, Wärt- the protection of the sensitive natural environment silä will design the smart campus in collaboration in the Antarctic. with Danfoss, Demos Helsinki Oy, NLC Ferry Ab Oy, Eldar Vindvik, a Director at Aker BioMarine, says Royal Caribbean Cruises Ltd, Vaasan Sähkö Oy and that Wärtsilä’s hybrid solutions for propulsion and the University of Vaasa. transmission devices and advanced heat recovery sys- “The aim is to create a playbook, which is a flex- tems significantly reduce the ship’s carbon footprint. ible concept enabling as many entities as possible to The main engines on the newly built ship are of the be involved for different periods of time. We believe Wärtsilä 31 type, and the auxiliary engines are two that this model will bring together experts from vari- Wärtsilä 20 engines. All of the engines are equipped ous fields to enhance innovation and discover new with Wärtsilä’s NOR catalyst systems, which reduce things,” says Hannu Mäntymaa, Wärtsilä’s Direc- nitrogen emissions when the engines are running tor of Engineering. on diesel. As part of the hybrid solutions, Wärtsilä is The smart campus has striven to attract local op- also supplying transmission solutions along with the erators as well as global partners, since building a associated batteries, gears and propeller equipment. strong ecosystem is an important part of the whole The new ship will carry equipment and liquids to ideology of the Vaskiluoto technohub. Aker BioMarine’s krill-fishing vessels operating in the “The University of Vaasa has been involved in Antarctic, and it will be completed by the beginning developing a functional concept from the outset. of the 2021 krill-fishing season. Demos Helsinki has a wealth of experience in build- ing different types of associations and working within Smart Technology Hub in Vaasa them. RCC and Danfoss are global companies that Onshore, Wärtsilä is building a new R&D and pro- will complement Vaasan Sähkö and bring an extra duction center in Vaskiluoto, Vaasa. The site will be spark to the development of smart seafaring and known as the Smart Technology Hub and it will be energy generation. taken into use by the end of 2020. According to Juha “The new ship on the Kvarken Link operated by Kytölä, the hub will provide a dedicated site for the NLC Ferry and the proximity of the port will provide entire R&D department, right by the port. unique opportunities for building an environmentally One part of this hub is the Smart Partner Campus, friendly ecosystem,” says Vesa Riihimäki, Wärtsilä a center of expertise in smart shipping and energy Finland’s Managing Director. generation. Partnership with the smart campus has In 2018, Wärtsilä Corporation’s net sales amounted aroused interest in Finland and elsewhere, and more to EUR 5.2 billion and it had approximately 19,000 than 200 entities have registered via the open inno- employees. The company has over 200 offices in more vation platform. than 80 countries around the world. Wärtsilä’s shares In March 2019, Wärtsilä selected its first partners are listed on the exchange.

40 Marine industry

ABB Ability™ is a harmonized, cross- sectional platform encompassing devices, networks and cloud services. It integrates data between products, systems, solutions ® propul- and services to provide the data required sion has become the industry for operations. The ABB Ability™ platform standard in the runs on the Microsoft Azure cloud service. cruise segment, securing the “ABB’s vision of electronic, digital and 100th cruise ship connected vessels is based on simplicity, ef- order in early ficiency and safety. The needs of today can be 2017. Energy savings equiva- addressed by fully integrating various differ- lent to 700,000 ent systems on a single platform, providing tons of fuel have been made in the an opportunity to use future technologies cruise sector due efficiently,” saysAntti Ruohonen, Senior to the selection of Azipod®. Vice President of Marine & Ports at ABB. ABB’s Marine & Ports business unit op- erates in Hamina, Turku and Vuosaari in Helsinki, and it has global responsibility for developing marine industry solutions ABB aiming to digitalise for ABB. Rudder propellers in the spirit the marine industry of Nordenskiöld Nobiskrug, a shipyard in Germany, has de- ABB Marine’s unit in Finland has plenty of work ahead veloped the super-hybrid yacht of the fu- ture for the very wealthiest yacht-owners, of it to digitalise the marine industry, develop remote- combining performance and comfort with controlled vessels and ensure the advancement of its sustainable development solutions, such as Azipod rudder propulsion devices. low emissions and low fuel consumption. The 80-meter hybrid yacht, named Ar- tefact, is powered by ABB Azipod rudder propulsion devices. The two Azipod rudder major milestone was reached in ABB’s Marine & Ports business unit. propulsion devices cut fuel consumption by the area of remote-controlled For the experiment, the one fifth compared with conventional power vessels in December 2018 when ferry was controlled from a temporary con- transmission solutions based on propeller the Suomenlinna II ferry was trol center located in central Helsinki. The axles. The propulsion devices can rotate 360° successfully test-driven in the ferry was controlled using the ABB Ability™ and, because they are located outside the Awaters outside Helsinki harbor. The historic Marine Pilot Control system, which uses hull of the vessel, there is more space within test, conducted by ABB and Helsinki Region . the keel for payload and greater comfort for Transport, is an important step forward for Suomenlinna II was built in 2004 and has passengers and crew alike. autonomous seafaring. The test enabled an ABB Azipod® propulsion system, which The mega-yacht’s power transmission ABB to trial technologies that make vessels is suitable for icebreaking. In 2017, the ABB also uses the ABB Onboard DC Grid system, more efficient and that can be fitted to ves- Ability™ Marine Pilot Vision system was fit- which enables step-free regulation of the sels of any type. ted to the ferry to provide status data. ABB engine power to different speeds and the “We are excited about the impact of the Ability™ is offered by ABB’s digital solutions use of accumulated energy as required. The test on the future of maritime transport. and services. Onboard DC Grid reduces fuel consumption ABB’s advanced automation solutions are by up to 27 per cent, and the system is also making previously impossible things pos- on Viking’s new flagship compatible with renewable energy sources. sible in many sectors, including maritime The technologies on board the new Viking Nobiskrug’s shipyard is also well known transport, a sector that is actively seek- Line car-and-passenger ferry being built in in Finland. The German company has pre- ing technologies to improve efficiency and China will also include the ABB Ability™ viously built vessels such as the bird-class safety,” says Peter Terwiesch, President System 800xA automation system, which icebreaking tankers Uikku, Lunni, Tiira and of ABB’s Industrial Automation division. integrates power generation, the Azipod® Sotka for Neste Corporation. In particular, “Autonomous does not mean unmanned. rudder propulsion system and the vessel’s M/T Uikku, which is equipped with Azipods, As vessels become electronic, digital and net- management systems on a single platform. has created a new chapter in seafaring his- worked, ABB can optimise the expertise of This provides the ship’s crew and ground tory by opening up the Northeast Passage seafarers using existing solutions, thereby staff with a wide-ranging overview of all in the 1990s, following in the wake of the improving the overall safety of sea travel,” the data required to operate safely and ef- Finnish explorer A.E. Nordenskiöld on his says Juha Koskela, Managing Director of ficiently. sailing ship, Vega.

41 Port operations

In 2018, a record volume of cargo was transported via the Port of Helsinki: 14.7 million tonnes.

On the journey to becoming the world’s most functional port

The Port of Helsinki is Finland’s leading general port for 7.3 million tons, while exports accounted for 7.4 for international transport, and it works for well- million tons. The Port of Helsinki mainly handles being and business activity in Greater Helsinki and unit traffic (12 million tons in 2018), consisting of Finland as a whole. Helsinki is also one of Europe’s cargo transported in containers, lorries and trail- busiest passenger harbors for international travel. ers. One factor contributing to the record cargo vol- The Port of Helsinki’s vision is to become the world’s ume was the first full year of chemical pulp exports most functional port. from Metsä Group’s Äänekoski plant via Vuosaari In forthcoming years, the port will focus on ef- harbour. ficient and effective work, and promoting efficient The network of scheduled routes from the Port of transport links and logistics solutions. The opera- Helsinki is the most extensive and diverse in Finland tions emphasize sustainable development, as well as and, at peak times, vessels depart to Tallinn once an customer satisfaction and the travel experience. The hour. Vuosaari harbor celebrated its tenth year in op- solutions offered by new technology and digitaliza- eration in 2018, and it still has plenty of capacity. In tion are expected to provide comprehensive benefits. the future, efficiency will be boosted by automation and digitalization. The turnaround time and ability Cargo record: 14.7 million tons to keep to schedules will be instrumental in this. In 2018, a record volume of cargo was transported Preparations are also being made for the advent of via the Port of Helsinki: 14.7 million tons, breaking larger vessels: planning is underway on extensions the previous record set in 2008. Imports accounted to the piers and deepening of the fairway.

42 Port operations

In 2018, a total of 12.1 million pas- sengers passed through the port.

Helsinki is one of the world’s busiest passenger harbours for ” international travel.

Amazing Helsinki enthralls intends to become a pioneer of sustainable develop- visitors arriving by sea ment in the port industry. The Port of Helsinki provides an efficient setting for Every part of the port has an environmental per- popular sea routes to destinations including Tallinn mit guiding the port’s operations as required by law. and . In 2018, a total of 12.1 million pas- Several of the piers in Helsinki have shore power sengers passed through the port. Helsinki is one of connections for vessels and all of the piers have sys- the world’s busiest passenger harbors for interna- tems for discharging wastewater from vessels into the tional travel. city’s water treatment plants. In addition, the port A record number of international cruise passengers has a pricing system to incentivize cruise vessels to visited Helsinki, and the Finnish capital showed its discharge wastewater into the municipal sewer. Dis- best side. Almost 520,000 cruise passengers visited counts are also on offer for vessels operating scheduled the city in total. In autumn, a new pier was completed routes if the ship owner takes action to reduce noise in Hernesaari to serve large cruise vessels. The pier or air emissions or makes investments to improve the will be taken into use in May 2019, replacing the old environmental performance of vessels. Melkinlaituri pier. The Port of Helsinki, like its owner, the City of Helsinki, is committed to the target of achieving a A pioneer of sustainable development carbon-neutral Helsinki by 2035. The Port of Helsinki engages in environmental coop- eration locally, nationally and internationally, and it

43 Port operations

For the Port of Oulu, the most important modernization was the work to dredge a fairway 12.5 meters in depth, carried out at the end of 2018.

new and existing customers using the port. And the development does not end there: from 2019 to 2021, Port of Oulu Ltd – the field areas will be expanded by several hectares, and we will increase pier capacity along the new 12.5-metre-deep fairway. ready for growth Digitalization is challenging us to go further. The Port of Oulu does not intend to stand by and watch For the Port of Oulu, the last few years have been development occur elsewhere – we have taken a the busiest in its history in terms of development. pioneering role in development. Working with our We have built a lot of new fields and railways, and partners, we have created a vision for the future we have increased pier capacity. The most impor- development of the port. We took the first step at tant modernization was the work to dredge a fairway the end of 2018 when we made an agreement for 12.5 meters in depth. The work was carried out at a new, very fast LTE network to be constructed at the end of 2018. The new, deeper fairway will pro- the port. The new network will enable entirely new vide the port with greater growth opportunities. forms of digital service for port operators and cus- Alongside the dredging work, we also expanded the tomers. Alongside infrastructure construction, ICT surface area of the port by more than 50 hectares. development is playing a key role in our expanding This will provide a wide range of opportunities for service offering. Port of Pietarsaari, Port infra structure – our strength Trade and shipping were the original rea- In late autumn 2015 the channel to the sons for the founding of the town of Pietar- port of Pietarsaari was authorized by the saari. The first Finnish Transport Agency to build the new Finnish ship to sail around the world from 11-metre draft. The new draft makes it pos- 1844–1847 was the bark ship Herkules out sible for ships to carry about 90 percent more of Pietarsaari. cargo in a more ecological way compared to A lot has happened since then. The harbor our earlier 9-meter channel. This means in- infrastructure has developed rapidly together creased turnaround for our customers. with various industries in the Pietarsaari re- In 2016–2019, investments have been gion that needed the port for their exports made to improve the capacity for holding and imports. It is not by chance that UPM, stock in the area by constructing two new 2 2 Together with Pietarsaari Mills – currently one of Europe’s 4.000 m warehouses and 18.000 m stor- the port operator, biggest pulp mills – and Alholmens Kraft – age area. Euroports Pietar- the world’s biggest bio-fuelled power plant – saari Oy Ab, the port is one of are located just a stone’s throw from the port. Port of Pietarsaari the most efficient Together with the port operator, Euro- www.portofpietarsaari.fi in the world that deals with wood- ports Pietarsaari Oy Ab, the port is one of www.portofjakobstad.fi processing indus- the most efficient in the world that deals [email protected] try products. with wood-processing industry products.

44 Port operations Tahkoluoto is home to Finland’s deepest harbour

Port of Pori Ltd provides land rental, ship, crane and con- electrified to both the Mäntyluoto and Tahkoluoto parts veyor services. The Port of Pori consists of three harbors: of the harbor. Mäntyluoto, the Tahkoluoto oil and chemical harbour, and We are making major investments in the safety and the Tahkoluoto deep harbour. The depth of the Tahkoluoto environmental friendliness of the harbor. For example, fairway is 15.3 meters, making it Finland’s deepest har- we have lowered the charges for vessels running on alter- bor. All of the harbor areas can be safely approached along native fuels. The most recent investment was a transition short and direct fairways. to LED lighting. All of the outdoor lighting in the harbor In the future, a new pier measuring approximately 500 is being placed with new LED lights, and the investment meters in length will be added to Kallonlahti in Mäntyluoto, has already begun. providing new opportunities and improving the harbour One of our areas of expertise is handling project cargoes, infrastructure, while offering new business opportunities. and it is cost efficient to handle special shipments via our A further aim is to invest in a new oil pier for Tahkoluoto port using the good – and constantly improving – routes which is currently undergoing the permit procedure. This available to every part of Finland. Our port offers Finland’s will also increase the safety and efficiency of liquid trans- most diverse range of services, all the way to 200-ton hoists. portation. We also have good overland connections to Russia. Rail Further information: www.portofpori.fi investments are currently being made: the tracks are being

Port offers Finland’s most diverse range of services, all the way to 200-tonne hoists.

45 Port operations Finnpulp selects HaminaKotka as its export harbour

he Port of HaminaKotka Ltd has signed a – the new zone D in Mussalo – where Finnpulp’s major letter of intent with Finnpulp for operations will be located as a natural continuation. the routing of its chemical pulp products. The Port of HaminaKotka Ltd is currently invest- Finnpulp is constructing a bioproduct ing over EUR 30 million in building a field, pier and factory in Kuopio. breakwater in the area. TThe Port of HaminaKotka Ltd is reserving and Thanks to the letter of intent, the Port of Hami- preparing a land area and connections for Finnpulp naKotka will be able to play its own logistical role for the purpose of constructing a large chemical in Finland’s largest forestry industry investment, pulp warehouse and logistics operations. In return, which will reinforce the Port of HaminaKotka’s po- Finnpulp will sign a long-term agreement to cen- sition as the country’s largest universal, export and tralize its enormous traffic volumes, amounting to container port. 1.2 million tons of chemical pulp every year, at the “Finnpulp’s decision represents an enormous op- Finnpulp for the Port of HaminaKotka. Shipments destined for all of portunity for HaminaKotka, and it will add a whole purpose of con- structing a large Finnpulp’s global export markets will be operated new dimension to our forest industry exports, estab- chemical pulp from the warehouse. Cargo we be handled by con- lishing HaminaKotka as the leading chemical pulp warehouse and logistics opera- ventional methods and in containers. harbor on the Baltic Sea. The decision to build zone tions. In March of this year, the Port of HaminaKotka D has already proven profitable, and the work is not Ltd, Steveco and UPM agreed on the construction of even finished yet,” saysKimmo Naski, CEO of the a substantial chemical pulp center in the same area Port of HaminaKotka Ltd. Port operations Turku is Finland’s hub for Scandinavian transport

The Port of Turku is the center of Scandinavian transport from Finland and one of the country’s most important lo- gistics hubs. The main direction for traffic from the port is Stockholm, with several departures daily. In addition to the Scandinavian countries, there are regular scheduled services from Turku to Germany and the UK, as well as connections to ocean-going lines. The port is part of the European Union’s TEN-T core network, and the cargo traffic from the port mainly focuses on traffic and project shipments requiring careful handling. The Port of Turku is the gateway to the world for goods such as machinery for the mining industry, highly refined steel products and forest industry products. The Port of Turku offers fast passage for heavy goods traffic, with uncongested connections to the main routes in Finland. Thanks to long-term development work, the Port of Turku has become Finland’s leading distribution center for cargo traffic to and from Scandinavia. The Port of Turku has plenty of modern warehousing and terminal space for imports and exports, as well as extensive field areas. The country’s leading port operation professionals are respon- sible for careful and secure cargo handling. Every year, approximately 3.5 million passengers pass through the Port of Turku. Four modern vessels operate the route between Turku and Stockholm, emphasizing The Port of Turku has become Fin- environmental friendliness alongside passenger comfort. land’s leading dis- In 2021, a second vessel running on liquefied natural gas tribution centre for cargo traffic to will begin operating the route. Like its predecessor, it will and from Scandi- be equipped with rotor sails. navia.

For more information, see www.portofturku.fi

47 Shipowners

Eckerö Line is seeking to replace chemicals with environmen- tally friendly solutions. To this end, the ship- ping company´s M/S Finlandia began working with ProtectPipe, a company in the microbiotechnol- ogy sector, in summer 2018.

Shipowners on the Baltic Sea are highly environmentally aware

The sulfur and nitrogen emissions of ships are well under control in the Baltic Sea. The most important short-term goal is to promote the development and adoption of fossil-free fuels by Finnish ship owners. Everyone must work together to advance this goal.

n the short term, Finland’s ship owners aim sel running on LNG. In addition, a letter of intent to promote the development and adoption of has been signed on the construction of a new, en- fossil-free fuels among Finnish ship owners. vironmentally friendly ship. Thirdly, the waste heat At present, sulfur dioxide and nitrogen oxide output by the ship’s engines is recovered and used emissions have been reduced as planned. for the ship’s various functions. IIn regard to carbon dioxide emissions, all of the Tallink and ships use a real-time fuel parties involved must work together. Alongside ship monitoring system, which enables the passage of owners, efforts will be required of fuel manufactur- the ship to be optimized, thereby reducing fuel con- ers, as well as ports and cities. sumption and emissions. For example, the CO2 concentrations of fossil fuels Digital technology is being put to use. For ex- can be reduced by mixing them with bio-components. ample, the Silja Serenade, which operates the route Energy company Neste has begun a Renewable Marine between Helsinki and Stockholm, is involved in Fuel program to this end. Ports are also working to Business Finland’s INTENS project, which aims to improve factors such as shore power for ships. The City improve the energy efficiency of ships and reduce of Helsinki aims to become carbon-neutral by 2035. their emissions. By 2050, Finland aims to reduce the absolute The EU’s LeanShips project also seeks to improve greenhouse gas emissions from seafaring by 50% in energy efficiency, and Victoria I, which operates the comparison with 2008. Fossil-free seafaring should route between Tallinn and Stockholm, is involved be a reality by the end of the century. in this project.

Tallink Silja is reducing emissions Viking Line considers LNG Firstly, the shipping company intends to fit its ships a good alternative with shore power capabilities, as well as batteries Like others, Viking Line, a Finnish passenger ship- for hybrid operation. Batteries can help to reduce ping company, has made substantial investments in the use of auxiliary engines while the ship performs the energy efficiency of its ships and in cleaner fuels. port operations. Secondly, Tallink Group is already According to Ulf Hagström, Senior Vice President operating the M/S Megastar, a next-generation ves- of Marine Operations & New-builds, LNG is a good

48 Shipowners

Tallink Group is already operat- been named, will begin operating the route between ing the M/S Turku, Åland and Stockholm in early 2021. Megastar, a next- generation vessel The new vessel will be larger than Viking Grace running on LNG. but, despite this, calculations have shown that it will In addition, the shipping com- consume ten per cent less fuel. The energy efficiency pany has recently of the flagship will be world-class. signed a contract on the construc- Ulf Hagström says that Viking is always consider- tion of a new, ing other energy solutions, such as biofuels, ethanol, environmentally fuel cells and batteries. friendly ship. “The problem with biofuels is one of availability, so they are not a short-term volume solution for seafaring. Ships need such enormous volumes of biogas and there is simply not enough of this fuel available,” he says, adding that hybrid solutions for energy generation will play an important part in the future of shipping. The M/S Viking “As batteries develop, fully electric ships may be- Grace uses come widespread on suitably short routes. Some ex- Norsepower’s rotor sails. The perience has been gained in this area in places such as company´s new Norway. Nonetheless, I have greater belief in hybrid flagship, now un- der construction solutions, such as combining electricity with differ- in China, will be ent fuels,” he says. fitted with LNG solutions as well as rotor sails. On the M/S Finlandia, microbes unblock pipes Eckerö Line’s M/S Finlandia is the only ship sailing between Helsinki and Tallinn under the Finnish flag. option for the fuel of the future on the Baltic Sea – Seafaring is one of the most heavily regulated sec- but it is just one of many. tors, so shipping companies are subject to a large Viking Line’s M/S Grace, which entered service in number of directives and laws related to safety and 2013, gained fame as the world’s first LNG-powered the environment. ”Tallink passenger vessel and, since then, the ship has bun- Eckerö Line’s goal is to minimize its burden on the Silja kered gas more than 1,000 times. Viking has a supply environment. To achieve this, the shipping company agreement with AGA Gas Ab, which refuels the ship is developing new procedures for handling the emis- intends to with its bunkering vessels as it sails the route between sions and waste products from ships. fit its ships Turku, and Stockholm. To this end, M/S Finlandia began working with with shore “We have had very good experiences with LNG at ProtectPipe, a company in the microbiotechnology sea. LNG could easily become one of the future ma- sector, in summer 2018. Eckerö Line is seeking to power rine fuels on the Baltic Sea. However, there are other replace chemicals with environmentally friendly so- capabili- energy solutions. We are also considering hybrid so- lutions. ProtectPipe’s microbial solution fits the bill ties, as lutions, batteries, biogas, ethanol and, of course, ro- exactly – a natural alternative to conventional sew- tor sails, which we have trialed,” Hagström explains. age chemicals. well as The M/S Viking Grace uses Norsepower’s rotor sails, The kitchens aboard the M/S Finlandia began using batteries which were fitted about one year ago. In Hagström’s ProtectPipe’s biological floor wash, BioFloor, which for hybrid opinion, it is still too soon to say anything definitive contains living microbial strains that eat the grease about the savings available with rotor sails. and other organic waste that is stuck to the floor. operation. The floor is first rinsed, and then the microbial The new flagship will also have sails solution is spread evenly over it. At the end of the The ship owner’s managers have decided to incor- process, the floor is dried using a squeegee, so the so- porate LNG and rotor sails into Viking Line’s future lution ends up in all of the floor drains. The microbes plans. The company currently has a new flagship un- feed on the organic waste that builds up in pipes, der construction in China, and the new vessel will forming a biofilm on the interior surface, thereby be fitted with LNG solutions, as well as two Norse- preventing new material from sticking to the pipe power rotor sails. The new-build, which has not yet and causing blockages.

49 Shipowners

The vessels will be a new kind of hy- brid ro-ro vessels – they will use fossil fuel during sailing but only electric- Finnlines’ actions in ity restored in lithium-ion bat- tery bank while in port, and hence sustainable shipping – guaranteeing ‘zero new energy-efficient vessels emissions in port’.

During the past decade, Finnlines has made a whole a cargo capacity of 5,800 lane meters. The vessels series of concrete investments totaling EUR 1 bil- will be a new kind of hybrid Ro-Ro vessels – they lion, including actions to promote environmental will use fossil fuel during sailing but only electricity sustainability and corporate social responsibility. restored in lithium-ion battery bank while in port, These actions include emission-abatement system and hence guaranteeing ‘zero emissions in port’. In installations on 21 ships, fleet changes and route addition, an innovative air lubrication system under optimization, fuel monitoring and slow steaming, the keel will create bubble layers which will reduce silicone anti-fouling treatments, propulsion im- friction and hydrodynamic resistance and, conse- provement and vessel lengthening investments. All quently, reduce fuel consumption and emissions as investments were aimed at reducing fuel consump- well. Optimized energy efficiency is ensured with tion and emissions per transported ton. the hull lines and propellers, including the most In 2018, Finnlines completed its EUR 70 mil- advanced integrated propeller-rudder systems. lion program under which six Ro-Ro vessels were Furthermore, Finnlines is working on develop- lengthened, and the achieved 30% capacity increase ing a new Superstar Ro-Pax class concept. These will reduce energy consumption per transported vessels will also be equipped with emission abate- unit compared to the original vessel. ment and other advanced fuel-consumption and Finnlines continues to invest in increasing its emission-reduction systems. Also, LNG as an al- vessel capacity and has ordered three Ro-Ro vessels ternative fuel is considered. The company aims from the Chinese Jinling shipyard. Their delivery towards increased energy efficiency and reduced is expected from 2021–2022. These new technol- emissions. The deliveries of these vessels are likely ogy vessels are 238 meters long and will each have to take place in 2021–2022.

50 Meriaura’s VG EcoCoaster – the most VISION Merikotka is a pioneer and environmentally a respected research centreLQWKHÀHOGRI friendly vessels in PXOWLGLVFLSOLQDU\PDULWLPH research the Baltic Sea MISSION

Research for sustainable The VG EcoCoaster vessel type, developed carbon dioxide emissions are 75% lower. maritime transport by Meriaura Group, is a highly energy-effi- The vessels have been designed to be cient bulk carrier. The vessels are equipped as environmentally friendly as possible in RESEARCH THEMES with two separate fuel systems, enabling other regards: the hull is coated in non-toxic the main engine (ABC 8DZC) to run on Ecospeed paint, which improves energy ef- MGO and biofuels. The vessel is optimized ficiency without requiring anti-fouling. The Maritime safety to sail at 10.5 knots in open water condi- ship has systems for recovering the water tions, and the reserve power demanded for used to wash the cargo holds and treating the 1A ice class is generated using a diesel- ballast water. Heat recovery, air condition- electric booster engine. When the vessel ing solutions and LED lighting improve the runs on MGO, its fuel consumption and energy efficiency of the living spaces. The emissions are around half those of conven- first EcoCoaster vessels, the 5,000 DWT tional cargo ships in the same size class. M/S Eeva VG and Mirva VG, have been op- When the ship runs on waste-based bio- erating since the end of 2016 in the Baltic fuel, it releases no sulfur emissions and its Sea and Northern Europe. Maritime industries & logistics When the ship runs on waste- based biofuel, it releases no sul- phur emissions and its carbon dioxide emissions are 75% lower.

Marine environment

www.merikotka.fi

51 Shipowners In 2018 Trans- fennica carried 4,8 million tons of cargo, fulfilling the company's Transfennica - staying competitive objective to be- come the indus- with a modern, clean fleet try leader. Transfennica is committed to reducing transport routes between continental Europe, vessels are equipped with twin bow thrust- emissions with its modern fleet in order to Estonia, Finland and Russia. Its advantages ers of 850 kW each and two high-efficiency meet high environmental standards for the include the fastest total lead times, extensive flap rudders. Maximum speed is about 23 future. To that end, the shipping company's information technology backup, fast cargo knots at 12,800 DWT. The vessels have been entire fleet is equipped with scrubbers. handling, flexibility and safety. strengthened to Finnish/Swedish ice-class This environmentally friendly approach With its versatile vessels, the fleet can 1A Super capability by incorporating Spli- is, to a great extent, based on efficient use practically carry any general cargo, includ- ethoff icebreaking bow-shaped fin stabiliz- of resources. By adjusting quantities with ing Sto-Ro, containers, trailers, cassettes, ers to ensure safe passage in rough weather. capacity, giving special emphasis to fuel mobile cargoes and project cargoes, as well The company is committed to service and economy and bringing the goods as close to as IMDG-classified goods and temperature- quality. By focusing on fewer ports and in- the customer as possible, maritime transpor- controlled units. To cater to different cus- creasing sailing frequency, cost-effectiveness tation is made more efficient by minimiz- tomers’ requirements and changes in the has been improved. Handling speeds have ing its environmental impact. For example, trade, the company has offices in Amster- also been considerably increased during the all Transfennica's vessels are retrofitted dam, Antwerp, Gdynia, Kotka, Helsinki, past several years. Its challenge to develop with scrubbers, a solution that has assured Lübeck, Paldiski, St. Petersburg and Tilbury. faster, more efficient and safer vessels for compliance with environmental laws in the Speed both at sea and in port is an im- a wide customer base has been realized. SECA regions. portant feature of the Trafexpress-class of Within its network, Transfennica has Transfennica, established in 1976 and vessels, which are suitable for short-sea, as about 100 skilled workers dedicated to cus- owned by Dutch Spliethoff since 2002, is a well as deep-sea traffic. These vessels are tomers and suppliers. Its extensive on-line European shipping company with fast-sched- equipped with two medium-speed main en- information network manages a full range uled liner services. With its modern, multi- gines, each with an output of 12,600 kW. To of operations and electronic links with its purpose Ro-Ro fleet, the company offers fast- guarantee the best-ever maneuverability, the customers.

Langh’s unique water treatment method The scrubber manufacturer Langh Tech installed on Langh Ship’s vessels, which can NOx emissions to meet Tier III require- Ltd is one of the Langh Group of compa- be used as testing platforms for continu- ments. The closed loop process is based on nies, which also include shipping company ous product development. The knowledge wet-scrubbing with fresh water and using Langh Ship Oy Ab and Industrial and Ship for water purification originates from the sodium hydroxide (NaOH) to neutralise Cleaning Services Hans Langh. industrial cleaning company. the sulphur. In open loop mode, seawater Langh Ship has a fleet of five multipur- Langh Tech’s water treatment units can is used in the exhaust gas washing process. pose container vessels. M/S Aila and M/S also be delivered in combination with other The small and lightweight Langh Tech scrub- Linda are 11,500 DWT vessels, and M/S manufacturers’ scrubbers. ber can replace the silencer. Laura, M/S Hjördis and M/S Marjatta are This unique water treatment method The scrubber and water treatment units 6,500 DWT vessels. enables continuous closed loop operation are designed for retrofit installations as well Langh Tech designs and produces scrub- causing only a minimal amount of sludge, as new buildings. In addition to component bers for removing SOx from exhaust gases hence reducing waste removal costs. The delivery, Langh Tech takes care of commis- and water treatment units for closed loop efficiency of the water treatment method sioning and offers installation supervision, scrubbers. Langh Tech scrubbers have been is recognized throughout the shipping in- crew training and after-sales service. dustry from cargo ship owners to cruise Langh Tech currently has over 100 refer- ship operators. ence vessels and the company’s key message Langh Tech has also developed a water to ship owners and operators is that Langh treatment system to be used for cleaning Tech delivers scrubber systems quickly, with the process water from Exhaust Gas Recir- all the components tailored individually for culation (EGR). EGR is a method to reduce each project.

52 Shipowners

Containerships’ LNG-concept spreads out from sea to land; target is to create a com- plete, LNG based door-to-door supply chain in Europe. Containerships Receives First LNG-powered Boxship

Multimodal transporter Containerships Plc an- lenge of building with a new technology. It has been nounced the delivery of its first LNG-powered con- a rewarding project full of learning opportunities”, tainer vessel, M/S Containerships Nord. She was they say at Containerships. delivered to Containerships at Wenchong Shipyard, – This project has required high levels of expertise China, on 12.12.2018. and constant development. Success requires excellent A press release from the Finland-headquartered co-operation between the involved parties. Needless shorts-sea specialist said that its LNG-story started to describe how proud and enthusiastic we are of hav- in 2013, when the decision to build the new environ- ing received the first vessel.” mentally friendly LNG-powered vessels was taken. Containerships’ LNG-concept spreads out from LNG is a relatively new fuel source, and these ves- sea to land; target is to create a complete, LNG based sels would be the first new-builds based on this tech- door-to-door supply chain in Europe. In addition to nology to serve regularly European ports and trade, LNG-powered vessels, company looks for constant Containerships said. growth of LNG-fuelled transport capacity on land – By taking this decision, we accepted the chal- logistics by investing in LNG-fuelled trucks.

The world’s most eco-friendly bulk carrier now operating on the Baltic Sea

ESL Shipping’s next-generation bulk carrier ship, ki Koskinen, Managing Director of ESL Shipping. known as Viikki, began operating in the Baltic Viikki was built in China, after which she sailed Sea in mid-November 2018. The first load was de- to Japan to pick up a cargo of raw materials. From livered to the Port of Helsinki, and a celebration there, the ship reached the Baltic Sea via the North- was held for Viikki, which is the world’s lowest- east Passage, which shortened the journey from emission bulk ship like her sister ship, Haaga. Japan to Finland by three weeks. Using the North- The 160-metre, 25,600 DWT vessel runs on east Passage also reduced the emissions from the liquefied natural gas, producing over 50 per cent journey by 40% in comparison with travelling via less carbon dioxide than previous-generation the Panama Canal. vessels thanks to LNG and several technological “We are well aware of the debate surrounding innovations. the environmental issues in the maritime sector. M/S Viikki is the Viikki is full of new technologies, and one of The design of Viikki and her sister ship, Haaga, world’s lowest- the most important of these is the use of lique- began five years ago, and these ships represent emission bulk ship like her sis- fied natural gas (LNG) in the ship’s main engine, everything that can possibly be done for envi- ter ship, Haaga. three auxiliary engines and the heating boiler. ronmental efficiency at this moment in time,” The ship already meets the 2025 environmental Koskinen says. requirements. “This has been a long project and our entire “In the future, we will call at Helsinki fairly personnel was involved, so now we are glad that regularly. However, in the near future, we will be the vessels have arrived in the Baltic Sea. They operating mainly in the Gulf of Bothnia,” says Mik- arrived at a good time,” Koskinen says.

53 Marine industry

“Agile cloud technologies are instrumental in improving the efficiency of ma- rine transporta- tion and reducing emissions,” says Tero Hottinen, ’s Direc- Cargotec aiming to tor of Emerging optimize its logistics chain Digital Business.

Cargotec, a provider of cargo and load-handling solu- “The maritime industry is no more conservative tions, aims to become the leading provider of smart than other traditional industries, and digitalisation is solutions in its industry. The Finnish listed compa- making progress in every sector. There has been much ny updated its strategy at the end of 2018 to this talk of smart containers. At the moment, the furthest end. Cargotec’s smart digital cloud technologies will this has gone has been in refrigeration containers, eliminate inefficiencies, save its maritime customers known as reefers. Until a couple of years ago, these money and reduce emissions. technologies were not taken very seriously. However, “Through its subsidiaries, Kalmar, Hiab and new technologies tend to develop more quickly than MacGregor, Cargotec has a unique opportunity to anyone expects,” says Hottinen. enhance the efficiency of cargo logistics as a whole,” Digitalization will play a key role in Cargotec’s fu- says Tero Hottinen, Cargotec’s Director of Emerg- ture. Navis, which belongs to the company’s Kalmar ing Digital Business. business area, offers terminal operator systems (TOS) “The aim is to optimize worldwide cargo flows and and Kalmar’s XVELA stevedoring collaboration ap- transform load-handling into a smart and sustainable plications, which makes it faster and more flexible business. In this sense, it is apt to describe our busi- to prepare loading plans for vessels. ness as optimizing the logistics chain,” Hottinen says. Navis is expanding Cargotec’s software business In his opinion, the maritime industry is saturated organically and through acquisitions. One of the with fragmented operators using their own systems. recent examples is Cetus Labs, Inc, an American This leads to inefficiencies. One good example is the company acquired in 2019. Cetus provides Octopi, a way that large container ships are forced to wait for cloud-based enterprise resource planning system in- free routes into harbors. tended for small container and mixed cargo terminals. According to Hottinen, the fastest operators in “Agile cloud technologies are instrumental in im- the sector stand to make tens of billions automat- proving the efficiency of marine transportation and ing the world’s ports. Cargotec is involved in this via reducing emissions,” Hottinen says. its Kalmar business area and Navis, which belongs On the subject of reducing emissions, Kalmar to Kalmar. has made an agreement with Yara, the Norwegian Last summer, Kalmar and Navis made an agree- fertilizer giant, on the delivery of a significant cargo- ment with the Moorebank Logistics Park in Qube handling solution. The solution will enable the world’s in Southwest Sydney, Australia, on an automation first electrically powered, autonomous container ship, solution worth EUR 80 million. The site will receive Yara Birkeland, to be loaded and unloaded without the world’s first fully automated solution for an in- any emissions. termodal terminal. Kalmar is also supporting Yara with a comprehensive The OneTerminal solution includes Kalmar’s au- maintenance agreement. The Kalmar Care agreement tomated cargo-handling solution with container includes warranty repairs of container gantry cranes, cranes and travelling gantry cranes, as well as the along with spare parts, and preventive maintenance Navis N4 enterprise resource planning system. The of the automatic, rail-borne mobile gantry crane. In deliveries will begin in the second half of 2019 and addition, Kalmar’s experts are responsible for the so- the solution is expected to be completed by 2022. lution’s operations, automation and software.

54 Harbour operation

“Good morning Sir, I am your agent!”

We are always happy to receive such an enthusiastic enced professionals. We welcome our ships in every salutation, whether we are aboard a giant cruise ship seaport in Finland and on the inland waters of Lake with thousands of customers in the heart of a capital Saimaa. We offer the captain our help as soon as the city or a riverboat mooring up at an inland industrial ropes have been knotted around the berth. pier after a long journey through the canals. The greeting also means that the captain can re- On a September morning in Helsinki, our repre- lax having completed the sea crossing, handing over sentative climbs the crystal-encrusted steps of the responsibilities to the agent who, under the high-vis MSC Meraviglia, a 300-metre cruise ship, to greet the jacket, turns out to be a courier, tour guide, interpret- captain. A colleague in Imatra clambers up a rope lad- er, lawyer or even, if necessary, a therapist. der to the 80-metre RMS Saimaa dry cargo ship with Those prone to sarcasm may say that the ship’s C & C Port the same aim in mind. The third correspondent over- agent is a specialist who does not need any particular Agency Finland Oy’s office in a sees the Crownbreeze vessel as it loads sawn timber competencies as long as they are able to sort every- 101-year-old destined for the UK and a fourth is in Naantali to see thing out. Of course, we should not exaggerate: even- official residence the Mastera tanker unload a shipment of crude oil. tually, we will come across something we cannot do. on the Saimaa Canal. C & C Port Agency Finland is a team of 20 experi- TEXT KIMMO KUUKKA

Cruise businesses provide the impetus for NIT’s expansion NIT, a Finnish company specializing in turnkey de- new projects. Understandably, shipyards would like liveries of public spaces on cruise and passenger ves- to fill their future order books for an even longer sels, is growing on the tailwinds of the international period of time. cruise business. Jari Suominen, the Managing Direc- “NIT works in the same way – we would also like our tor, forecasts an increase in net sales from EUR 17 mil- voice to be heard on future projects,” Suominen says. lion in 2018 to EUR 30 million in this financial period. One of the company’s strengths is its ability to Cruise ship boom going on in Norway handle turnkey deliveries of public spaces on vessels As a subcontracting company, NIT (which stands for of all sizes from start to finish, including electrical, Naval Interior Team) has offices in Turku and Piikkiö plumbing and air conditioning work. Naturally, NIT in Finland, as well as locations in Germany, Norway One of NIT’s also makes use of its network of subcontractors de- and Japan. The last of these, in Nagasaki, has been strengths is its ability to pending on the situation and site. shuttered until the Japanese shipbuilding industry handle turnkey NIT, located in Piikkiö near Turku, lives in strong shows signs of recovery. deliveries of public spaces on symbiosis with the Meyer Turku shipyard for under- “Japan would like to build cruise ships, but they vessels of all sizes standable reasons. However, the turnkey supplier has are still waiting for better times. China also shares from start to other customers all over the world. this goal, and it needs know-how from European finish, including electrical, “Meyer’s order book is very strong, and our order shipyards to achieve this. China is still something of plumbing and book is also full for the next three or four years as the a mystery for all of us,” Suominen says. He mentions air conditioning cruise business is booming. Of course, this requires that NIT has so far held back from entering China. work. us to remain competitive and do our work well,” Jari Norway, on the other hand, represents a very at- Suominen says. tractive opportunity for Finnish companies as it be- “Meyer Turku’s new Carnival series is a major comes a rising star in building cruise ships. step forward for NIT. It means that larger ships will “Norway is undergoing a cruise ship boom. Right be built at a faster pace. Previously, ships were be- now, ship owners over there are ordering ice-rein- ing completed at an average rate of one per year in forced excursion vessels with a very high quality of Turku, but the new Carnival series and the expansions fittings. This is a good thing for us because NIT is able and the efficiency improvements of the shipyard will to build the public spaces for slightly smaller polar increase this rate to around 1.5 per year. More for or adventure cruise ships from start to finish itself,” everyone to build,” Suominen explains. Jari Suominen says. The booming cruise ship business seems to con- NIT employs just under 100 shipbuilding profes- tinue its growth. As companies begin to catch up sionals. The turnkey supplier’s net sales will grow from with their order backlogs, shipyards and ship owners approximately EUR 17 million in 2018 to a projected are gradually approaching each others to negotiate EUR 30 million in the current financial period.

55 New services and solutions

“Our new Pilot- age Act now enables trials of remote pilotage”, explains Kari Ko- sonen, the CEO of Finnpilot. Finnpilot launches Pilot Online Last year, Finnpilot’s customers gained access to an electronic pilotage ordering system. “Pilot Online further enhances the efficiency of our operations and supplements our existing digital services,” says Kari Kosonen, the CEO. Finnpilot broke several records last year, and the number of pilotage assignments along Finland’s coasts increased by more than 5%.

“Of course, the reason for this is the general growth patchers maintain 24/7 in our center. We now aim to in maritime traffic. Approximately 35% of the ships point customers towards placing more orders using visiting Finnish ports use pilots,” explains Kari Ko- the app and fewer by the phone or email.” sonen, the CEO Finnpilot. The next step will be to offer customers additional Last year, 25,616 pilotage assignments were com- information from the Pilot PRO application, which pleted, racking up 484,959 nautical miles of pilotage. was deployed for pilots two years ago. “We are particularly happy to see that our cus- “In the near future, the ships engaged in the STM tomer satisfaction ratings have remained excellent project information exchange will be able to download and 99.9% of all pilotage assignments were carried Finnpilot’s route plans onto the ship’s own naviga- out within the waiting time limits set in our targets. tion system, so the ship’s master and pilot are almost “Thanks to the continuous development and cost- literally ‘on the same page’.” efficiency of our operations, we have also succeeded in keeping the pilotage prices stable. In fact, our price Data for development work level is moderate compared with the other countries In 2018, Finnpilot’s AISLab system also underwent in Northern Europe.” further development. The system is able to analyze and visualize numerous different simultaneous ves- Added value for customers sel movements and changes in ships course and Pilot Online enables Kosonen states that developing various applications speed. The system provides the option of process- customers to is the everyday business of the company. ing historical data on how various situations have order pilotage aandnd manage all ““ThisThis is how we dedevelopv our own operations from developed during pilotage. ininformationformation thethe perspectives of safetysaf and efficiency. At the same “AISLab lays a strong foundation for organizational online. time,time, we can aalsolso offeroffer added value to our customers. learning and for using the collected data for training FForor example,example, the introduction of the mPilot purposes. Automated analysis functions will also be mobile aappp has consigned paper-based integrated into the system.” ppilotageilotage processesp to history, and all the informatinformationi related to pilotage is trans- Trials of remote pilotage fferrederred electronicallyelec to all parties involved Remote pilotage means that pilot performs his or aass soon asas the pilotage assignment has her duties somewhere other than onboard the ves- beenbeen completed.comp sel. For example, they may be located in an on-shore WWee havehave just launched a new pilotage monitoring center. oorderingrdering ssystemy – Pilot Online – which “Our new Pilotage Act now enables trials of remote eenablesnables customerscu to submit preliminary pilotage. Conducting a remote pilotage experiment iinformation,nformatio order pilotage, change in- will require wide-ranging collaboration between mari- formatioformationn they have previously entered time industry and academia. We are heavily involved aandnd monimonitort the orders they have placed. in developing remote pilotage as a part of the Sea4V- “In“In prapractice, this provides customers alue (S4V) project prepared within the One Sea eco- witwithh thethe optionop of monitoring the up-to- system. Funding application for S4V was submitted ddateate situatiosituationaln picture on pilotage concern- to Business Finland earlier this year. ing thethe shipsships theyt operate that our pilot dis- TEXT VAULA AUNOLA PHOTOS FINNPILOT

56 New services and solutions

”The FinEst API, developed by Fleetrange, provides timetable, location and arrival information in real time.

With the aims of making harbour traffic flow more smoothly, ef- ficiently support- ing businesses and minimising the adverse ef- fects of emissions and noise. FinEst Smart Mobility – smart traffic management for ports

A timetable, location and arrival time service for For heavy goods traffic, the project has involved a ferry traffic; an app that shortens queuing times for pilot of GoSwift’s J-I-T app, which guides lorries to the lorries; a service that provides an overview of harbor harbor within a specified time slot, which evens out traffic; and a carpooling service for ship passengers. the numbers of lorries arriving at the same time. This This is the FinEst Smart Mobility project. minimizes the amount of time that lorries spend at the Traffic volumes at the West Harbor have soared, harbor and reduces the peak traffic loads at check-in. making it the world’s busiest passenger harbor. Every Infotripla has developed a real-time traffic forecast- year, nine million passengers travel between Helsinki ing system for the harbor area, helping traffic man- and Tallinn. Every day, 650 lorries drive through agers to prepare for and react to the traffic volumes Jätkäsaari. caused by arriving and departing ferries. With the aims of making harbor traffic flow more In addition, Kyyti Group has piloted an app for a smoothly, efficiently supporting businesses and mini- carpooling service from the West Harbor to Helsinki mizing the adverse effects of emissions and noise, Airport with the aim of providing a transportation FinEst Smart Mobility has developed tailored solu- service that supports public transport on heavily tions to address the challenges facing the West Har- trafficked routes. bor due to increased traffic. The FinEst API, developed by Fleetrange, provides Further information timetable, location and arrival information in real time www.finestsmartmobility.com for the ferry traffic between the West Harbor and Tal- @Finest_smart linn. The interface enables ferry traffic to be integrated Suvi Hänninen, Project Manager, into other traffic, enhancing efficiency and reliability. City of Helsinki In terms of harbor traffic management and onward +358 40 627 9213, connections, it is crucial that the actual arrival times [email protected] of ferries are openly available and accessible.

57 New services and solutions

One Sea – an autonomous maritime ecosystem

One Sea is seeking to create the world’s most ad- is currently focusing on creating common industrial vanced and competitive ecosystem in the field of au- standards and contributing to international rules. tonomous maritime . The new The partners in the ecosystem are leading compa- ecosystem will carry over some of the aspects of the nies in their fields, including ABB, Cargotec, Ericsson, present maritime ecosystem but, in large part, it will Finnpilot Pilotage, Rolls Royce, Tieto and Wärtsilä. be completely new. The ecosystem will create an en- The ecosystem also has partnership agreements with tirely new global business in Finland alongside exist- the Finnish Marine Industries association, the Finn- ing successful businesses. ish Shipowners’ Association, the Finnish Port Asso- The ecosystem began operating in September 2016 ciation and Shipbrokers Finland. under the management of DIMECC. One Sea brought together global pioneers and agile ICT companies to www.oneseaecosystem.net develop the world’s first unmanned maritime trans- port solution. Business Finland has committed to financing the autonomous maritime transport eco- system and promoting the launch of new innovations until the end of 2021. The ecosystem has created a roadmap for making The” partners in the ecosystem are autonomous and unmanned maritime transport leading companies in their fields, a reality, and the goal of the project is to monitor including ABB, Cargotec, Ericsson, progress towards this. The objective is to create the world’s first unmanned maritime products, services Finnpilot Pilotage, Rolls Royce, and functional ecosystem by 2025. The ecosystem Tieto and Wärtsilä.

The objective is to create the world’s first unmanned maritime prod- ucts, services and functional ecosystem by 2025.

58 New services and solutions © Merikotka

Kotka Maritime Research Centre focuses on COMPLETE sustainable maritime transport research: – Completing management options in the Baltic Sea Region One target is harmful to reduce risk of invasive species hitchhikers in the Baltic Sea introduction by shipping

Kotka Maritime Research Centre forms a unique in- based on risk assessments and granted in a constant Project funding: ternational research community that combines en- manner, the selection of target species as well as The Interreg vironmental sciences, economics and engineering. species mapping and identification in ports requires Baltic Sea Region Multidisciplinary approach is needed to tackle com- scientific knowledge. Programme 2014– plicated maritime questions. The control of biofouling is currently carried out 2020 One of Centre’s projects focuses on invasive alien voluntarily. Hull cleaning enables potential for sub- Project imple- species, which can cause both ecological and financial stantial fuel savings, but in-water cleaning may re- mentation time: damage. There are no means to stop their spreading lease harmful substances or introduced species into 01/10/2017 – once they are initially introduced. the water. Also, the regulations and practices vary 30/09/2020 The COMPLETE project addresses the major path- across, which increases the risk of introduced species ways of introductions via ships: ballast water and spreading into the port where the cleaning takes place. More biofouling. The IMO Ballast Water Management In COMPLETE, 35 organizations from all Baltic information: Convention (BWMC) constitutes a significant step Sea states are co-operating to develop consistent www.baltic- towards better invasive alien species management. and adaptive management strategies to reduce risk complete.com Yet, for ensuring that the BWMC exemptions are of invasive species introductions. www.merikotka.fi

One of Centre’s projects focuses on invasive alien species, which can cause both ecological and financial damage.

59 Marine industry

"In 2005 we started system- atic development work of the Arctic LNG carriers. The first contract was signed with Novatek in 2010 and after then we spent three years working on the design of the new ice-capable LNG carriers", says Reko-Antti Suojanen, Aker Arctic´s Managing Director. Aker Arctic believes in LNG in northern seas

The design company Aker Arctic is betting on the rising volumes of LNG transported in ice-covered seas and on the increasing use of LNG as fuel for ships up in the high Arctic. ker Arctic’s main strengths as a ship de- that were built in Finland in the late 1980s. Rosatom- sign company are its specialization in ice- flot is preparing for the acquisition of four large going vessels, solid design expertise, and LNG-powered icebreakers, says Mr. Suojanen, and in-house ice model testing laboratory. adds that what comes to vessels’ size, these could be As a result, the company has extensive built for example at the Helsinki shipyard, but the Aexperience in the development of icebreakers and decision about the shipyard has not yet been made. other specialized ice-going vessels. Managing Direc- - The new icebreakers are about 160 meters long tor Reko-Antti Suojanen considers the growing im- and 31 meters wide and come with very powerful portance of liquefied natural gas (LNG) in the Arctic gas-powered main engines and large fuel tanks. Pre- seas as one of the major future trends. viously, it has not been possible to bunker the LNG - In the northern regions, natural gas is already in the northern seas, but the situation has changed being more sought after than crude oil. Volumes of completely since the opening of Sabetta LNG termi- LNG transported in ice-covered seas are on the rise nal in the Gulf of Ob, Mr. Suojanen contemplates. and the use of LNG as fuel for ships is also increas- ing, Mr. Suojanen describes the key changes in cur- Ice-going LNG-tonnage took years to design rent environmental and energy needs in shipping. Another extensive LNG project that Aker Arctic has Aker Arctic Technology is well-prepared for these been involved in is related to the gas company No- new trends. First of all, most of the world’s icebreak- vatek, or more specifically, Yamal LNG and its ice- ers have been built in Finland and the company has going carriers for LNG transportation from Sabetta been involved in their design. The company’s design LNG terminal. capacity has grown to cover the entire ship design - This project began already in 2005 when we process from concept development to basic design. started systematic development work of the Arctic At present, both Russia and the United States are LNG carriers. As a result, we were able to convince planning to procure new polar icebreakers and Aker gas producers that LNG can be transported through Arctic has concepts suitable for both. the ice in a cost-effective way. However, this project - Russia is in the process of replacing its nuclear- didn’t realize overnight: we signed the first contract powered icebreakers, including Taymyr and Vaygach with Novatek in 2010 and spent three years working

60 on the design of the new ice-capable LNG carriers, after which Daewoo shipyard won the shipbuilding tender. Since then, LNG carriers have been built in South Korea. Our co-operation with Novatek and other Russian companies has worked very well, Mr. Suojanen describes the project, in which the use of LNG has gained a completely new significance in the northern sea areas, and the shipping on the Northeast Sea Route has grown to a new record. The United States is also currently planning to build a new polar icebreaker, for which President Donald Trump has managed to secure funds from the Con- gress. According to the US principles, the US Coast Guard’s icebreakers must be built on an American shipyard. There are only local shipyards participating in the tender, one of them has a design agreement with Aker Arctic.

Test basin has been put in good use The heart of the design know-how is located in an office building in Vuosaari, Helsinki, which also has a 78-meter-long ice model-testing basin. Recently the company has been testing models of autonomous ships with new technical features. According to Mr. Suojanen, these types of autono- mous vessel maneuvering tests are required for the development of the marine equipment and for test- ing of automation systems, such as autonomous ship berthing. It is much more cost-effective/practical to do this work in the model scale in testing laboratory than with the real ships. An important area of expertise in which Finnish ship design is a world leader is related to oil recovery in ice. Mr. Suojanen says that oil recovery is difficult enough in open water, and it is even more challenging in ice. This has brought in a necessity to think about working out solutions to this problem. One example of this is an oblique icebreaker capable of collecting and purifying oily water in a completely new way. - The brushing machines designed by Finnish com- pany Lamor have proven their functionality in real life, says Mr. Suojanen, and reminds that LNG has one more environmental benefit: In the event of leakage, liquefied natural gas will gasify itself into the air and there is no need for collection from the sea.

”In the northern regions, natural gas is already being more sought after than crude oil.

61 Cooperation

An Air Patrol Squadron Super Puma landing on OPV . FIMAC - saving money on cooperation

he FIMAC cooperation between maritime Orchestrated public procurements authorities was initiated on 1994, when As a result of twenty years of cooperation, during the ministerial committee for administra- which vessel traffic monitoring and information sys- tion development approved a report of a tems have been jointly procured, savings of tens of working group on the rationalization of millions of euros have already been achieved, com- Tmaritime functions and organizational streamlining. pared to if each actor itself would have procured the The constitutive meeting for the nationwide coopera- same capacity. tion between maritime authorities was held already The Finnish system for maritime search and rescue on the same year. and traffic monitoring with its sensors, arrangements At that time the cooperating parties were the Finn- for information exchange and applications, which ish Maritime Administration, the Finnish Defence the FIMAC actors to a large extent have acquired Forces and the . Following a through joint procurement, is still a unique exam- reorganization of the government agencies under ple of extensive cooperation between authorities. In the Ministry of Transport and Communications on 2007, the FIMAC cooperation was awarded the Sea 1 January 2019, the present FIMAC parties are the Sunday safety prize. Finnish Transport and Communications Agency, the Finnish Border Guard and the .

62 Cooperation

Practical mari- time oil spill pre- vention training in cooperation with other au- thorities.

A new coastal on a trial run.

Training for exceptional maritime situations.

The Border Guard has significantly ” improved its fleet in the last ten years.

63 Marine industry

Paroc Marine and Offshore insulation is made of stone wool and developed for the needs of the modern shipbuilding and offshore industry. Paroc - marine solutions carved in stone

Paroc marine and offshore insulation is made of functionality together with easy and fast installation stone wool and developed for the needs of the mod- has become more and more important in the modern ern shipbuilding and offshore industry. The products shipbuilding and offshore industries. have been tested in various A-class and H-class deck These requirements demand alternative solutions and bulkhead constructions and in numerous fire for different fire applications. Paroc has several ap- door and panel constructions. provals for A60, A30 and A15 class solutions for steel The shipbuilding industry sets very high require- and aluminium, decks and bulkheads. For offshore ments for safety and comfort. Therefore the prod- applications Paroc has approvals for H120 and H60 ucts and structures used in ships must be fire tested steel decks and bulkheads. and approved according to the rules and regulations Paroc stands for energy-efficient and fire safe insu- of the International Maritime Organization (IMO). lation products and solutions of stone wool for new Paroc marine and offshore offers economical and and renovated buildings, HVAC, marine and offshore, safe insulation solutions for fire protection as well as acoustics and other industrial applications. Behind for on-board thermal and sound insulation. those products there is an 80-year history of stone Fire protection and thermal insulation on ships wool production knowhow backed with technical must meet very high requirements. Furthermore, insulation expertise and innovation.

64

The whole summary of the cluster study report: Column navigator- magazine.fi/news

The 13,7 billion eur Finnish Maritime Cluster Continues in Succesfull Growth

The Finnish maritime cluster is a versatile Highest growth in shipping while entity with a wide range of very diverse ports stagnate, marine industry companies with expertise, resources and keeping busy business in a wide variety of operating en- About 3,000 companies operate in the vironments and markets complementing Finnish maritime cluster and more than each other’s expertise. The cluster’s oper- 1,500 limited liability companies had sub- ating environment is extremely interna- mitted their 2017 accounts to the authori- tional and constantly faces global compe- ties. The total maritime cluster turnover tition. However, the development of the increased to 13.6 billion euros while the last few years shows the vitality of the na- directly employed personnel was 49,500. The total tional maritime cluster, as the companies The total turnover of Finnish marine maritime involved have shown their ability to trans- industry rose to EUR 8.33 billion, up 3.6% ” cluster turnover form into different markets and to build in- on the previous year. In 2017, the marine ternational connections in difficult times. industry employed a total of 29,000 peo- increased to The marine, shipping and port industries ple in their marine-related businesses. The 13.6 billion in the private and public sectors are the three marine industry figures reflected especially main interdependent groups of the national the good market situation in cruise ship euros while the maritime cluster. Despite of the challeng- construction, which was forecasted already directly employed ing environment, the total turnover of the a year ago by Mr. Tapio Karvonen at the Uni- personnel was maritime cluster grew to 13,7 billion euros versity of Turku, Brahea Center, who has led in 2017, from where the latest figures have the updating study of the economic indica- 49,500. been available. tors. The combined net sales of the largest shipyards increased by almost 14% despite the continued weak market situation in the offshore business. Mr. Karvonen expects that in 2018 positive development will continue to be strong in shipbuilding, as the Total turnover of the Finnish Maritime Cluster turnover growth will begin to be seen more in the subcontracting network companies. by the various sectors in 2007–2017, billion € The net sales of the shipping and other shipping-related operations grew by 4.3% to EUR 3.62 billion. The favorable development of the freight market is the most important factor. On the passenger side, the change has been much smaller. The combined turnover of port operations remained unchanged at EUR 1.38 billion. In the port industry, the previous year 2016 was a period of strong growth, which was now followed by a year of stabilization. However, in ports, more cargo was handled in the previous year, as the volume of foreign sea transport in- creased by 4.1%. In port operations, the number of personnel decreased, while in other sectors the number increased, down to 6,200 persons. QMarine industry QShipping QPorts QOther services Mikko Niini SOURCE: RANTI, T., GRÖNLUND, M. & KARVONEN, T. UNIVERSITY OF TURKU, BRAHEA CENTRE 2019 Chairman, Finnish Maritime Association

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